ACIT, DELHI vs. M/S. GARG DYEING PROCESSING & INDUSTRIES, NEW DELHI

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ITA 4340/DEL/2016Status: DisposedITAT Delhi07 May 2019AY 2007-083 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that as per CBDT Circular No. 3/2018, the Department should not file appeals where the tax effect does not exceed Rs. 20 lakhs. The Revenue's appeal was not pressed in light of this circular.

What were the facts?

The Revenue appealed against the deletion of a penalty of Rs. 13,76,102/- under section 271(1)(c) for the assessment year 2007-2008. The tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the Departmental appeal is maintainable before the Tribunal when the tax effect is below the prescribed monetary limit as per CBDT circular.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “C” : DELHI

Before: SHRI G.D. AGRAWAL & SHRI BHAVNESH SAINI

Hearing: 07.05.2019Pronounced: 07.05.2019

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-10, New Delhi, Dated 18.09.2012, for the A.Y. 2007-2008, challenging the deletion of penalty of Rs.13,76,102/- under section 271(1)(c) of the I.T. Act, 1961.

2 ITA.No.4340/Del./2016 M/s. Garg Dyeing Processing & Industries, New Delhi.

2.

Admittedly, the tax effect in the present appeal is less than Rs.20 lakhs. Vide Circular No.3/2018Dated 11thJuly, 2018 issued by CBDT, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs.20 lakhs. It is also directed that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in Tribunals. Pending appeals below the specified tax limit may be withdrawn/not pressed. The Ld. D.R. in view of the Board’s Circular above did not press the Departmental Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circular. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and therefore, the appeal of the Department is liable to be dismissed.

3.

In the result, appeal of the Department dismissed.

3 ITA.No.4340/Del./2016 M/s. Garg Dyeing Processing & Industries, New Delhi. Order pronounced in the open Court.

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