What did the Tribunal hold?

The Tribunal recalled its previous ex-parte order. However, upon re-hearing, it was found that the tax effect was below the revised monetary limit stipulated by CBDT circular No. 03/2018, making 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 admitted to be above Rs. 10 lakhs but below the revised limit.

What were the issues?

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

ITO vs Sunaina Joshi | ITAT Delhi 2019

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

Before: SHRI R. K. PANDA

For Respondent: Dr. Shashwat Bajpai, Advocate

Heard together (2 matters)

MA No.208/Del/2018

ITA No.4111/Del/2017

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.12,35,720/- 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 other hand fairly conceded that 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 monetary limit to Rs.20.00 lacs for filing of appeals by the revenue, 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 the tax effect involved in the grounds as admitted by the revenue is Rs.12.35.720/-. 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 on account of low tax effect and accordingly, the same is dismissed.

In the result, the appeal filed by the revenue is dismissed. Order pronounced in the open court on 21.05.2019.

ITO, WARD-39(4), NEW DELHI vs. SUNAINA JOSHI, DELHI

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