What did the Tribunal hold?

The Tribunal recalled its earlier order, acknowledging the mistake in dismissing the appeal based on an outdated circular. However, applying a newer CBDT circular with a higher monetary limit, the Tribunal found the appeal not maintainable.

The revenue filed a miscellaneous application requesting the recall of an ex-parte order that dismissed their appeal due to low tax effect. The tax effect was Rs. 10,03,090.

What were the issues?

Whether the appeal filed by the revenue was maintainable given the tax effect and the applicability of CBDT circulars regarding monetary limits for appeals.

ITO vs M/S. V.S. Lather Sons HUF, Hisar | ITAT Delhi 2019

Income Tax Appellate Tribunal, DELHI BENCH “Friday” NEW DELHI

Before: SHRI R. K. PANDA

For Respondent: CA Sh. Lakshay Goyal, Advocate

Heard together (2 matters)

MA No.236/Del/2018

ITA No.6309/Del/2014

Read from the judgment's own cause title. This page is filed under one of them.

The revenue through this Miscellaneous Application requests the Tribunal to recall the exparte order passed by it dismissing the appeal filed by the revenue on account of low tax effect. 2. The Ld. DR referring to the miscellaneous application submitted that the tax effect involved in the appeal filed by the revenue is Rs.10,03,090/- and therefore, the Tribunal was not correct in dismissing the appeal of the revenue on account of low tax effect in view of CBDT circular No.21/2015 dated 10.02.2015. Further the said circular is not applicable to pending appeals. He accordingly submitted that the order of the Tribunal be recalled and the appeal be decided on merit.

The Ld. Counsel for the assessee on the otherhand fairly conceded that although the tax effect involved in the grounds raised by the revenue is above Rs.10 lacs, however, in view of the recent circular of CBDT No. 03/2018, raising the monetary limit to Rs.20.00 lacs which is applicable even to pending appeals, the appeal filed by the revenue is not maintainable and has to be dismissed.

I have considered rival arguments made by both the sides and perused the material available on record. It is an admitted fact that the tax effect involved in the grounds raised by the revenue is above 10 lacs and, therefore, there is an apparent mistake in the order of the Tribunal in dismissing the appeal filed by the revenue on account of low tax effect on the basis of CBDT Circular No.20/2015 dated 10.12.2015. Therefore, the order of the Tribunal is recalled.

The miscellaneous application filed by the revenue is accordingly allowed.

After hearing both the sides I find tax effect involved in the grounds as admitted by the revenue is Rs.10,03,090/-. The CBDT vide circular No.03/2018 [F.No.279/Misc.142/2007-ITJ (Pt.)] dated 11.07.2018 has raised the monetary limit to Rs.20,00,000/- for filing of the appeals by the department before ITAT. As per para 3 of the said circular it is also clarified that the pending appeals of the department before ITAT having monetary limit of Rs. 20,00,000/- or less will be treated as withdrawn. Since in the instant case the tax effect is admittedly below Rs. 20,00,000/-, therefore, in view of the latest CBDT Circular cited (supra) the appeal filed by the revenue is not maintainable and is accordingly dismissed on account of low tax effect.

In the result, the appeal filed by the revenue is dismissed. Order pronounced in the open court on 22.05.2019.

ITO, HISAR vs. M/S. V.S. LATHER SONS HUF, HISAR

What did the Tribunal hold?

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