ITO, NEW DELHI vs. M/S. ENGINEERING INNOVATION, NEW DELHI

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ITA 5039/DEL/2016Status: DisposedITAT Delhi02 May 2019AY 2012-133 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. 03 of 2018, appeals with a tax effect below Rs. 20,00,000/- are not maintainable before the Tribunal. The Revenue should have either not filed or withdrawn the appeal.

What were the facts?

The Revenue filed an appeal before the ITAT for AY 2012-13. The tax effect involved in the appeal was less than Rs. 20,00,000/-.

What were the issues?

Whether an appeal filed by the Revenue before the ITAT is maintainable when the tax effect is below the monetary limit prescribed by the CBDT circular. Applicability of CBDT Circular No. 03 of 2018 to pending appeals.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI G.D. AGARWAL & SHRI K.NARASIMHA CHARY

For Respondent: Ms Nidhi Srivastava, CIT- DR
Hearing: 02.05.2019Pronounced: 02.05.2019

ORDER PER K. NARASIMHA CHARY, JM

The present appeal filed by the Revenue is directed against the order dated 13.7.2016 in Appeal No.111/15-16 passed by the Learned Commissioner of Income-tax(Appeals)-19, New Delhi {“CIT(A)”} in relation to Assessment Year 2012-13.

2.

We have heard the ld. DR appeared on behalf of the Revenue. It is found that pursuant to the mandate of section 268A, the CBDT has issued Circular No. 03 of 2018, dated 11th July, 2018 with 2 retrospective effect, revising the monetary limit to Rs.20,00,000/- for not filing appeals before the Tribunal. It is further found that as the tax effect involved in the instant appeal is less than Rs.20,00,000/-, the extant appeal is not maintainable. The ld. D.R., although supported the order of the Assessing Officer, but could not controvert the fact that tax effect involved in this appeal is less than Rs.20,00,000/-.

3.

Going by the prescription of the aforenoted Circular, it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT, wherein tax effect is less than Rs.20,00,000/-. We are, therefore, of the view that the Revenue should have either not filed the instant appeals before the Tribunal or withdrawn the same as the tax effect in this case is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/- for not filing the appeal. Accordingly, we dismiss the instant appeal without going into merits of the case.

4.

In the result, the appeal of the Revenue stands dismissed.

Order pronounced in the Open Court on 2nd May, 2019.

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