ITO, NEW DELHI vs. MODH. NADEEM, NEW DELHI

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ITA 5940/DEL/2016Status: DisposedITAT Delhi02 May 2019AY 2011-123 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 shall not file appeals where the tax effect does not exceed Rs. 20 lakhs. This instruction applies retrospectively to pending appeals.

What were the facts?

The Revenue appealed against the deletion of an addition made under Section 69A of the Income Tax Act. The tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the departmental appeal is maintainable given the tax effect and CBDT circular instructions regarding monetary limits for filing appeals.

Which sections of the Income-tax Act were involved?

Section 69A

AI-generated summary — verify with the full judgment below

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

Before: SHRI BHAVNESH SAINI

Hearing: 02.05.2019Pronounced: 02.05.2019

For Revenue : Shri S.L. Anuragi, Sr. D.R. For Assessee : Shri Ashvini Kumar, Advocate. Date of Hearing : 02.05.2019 Date of Pronouncement : 02.05.2019 ORDER

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-12, New Delhi, Dated 31.08.2016, for the A.Y. 2011-2012, challenging the deletion of addition of Rs.40,73,569/- made under section 69A of the I.T. Act, 1961.

2.

Earlier, the departmental appeal was allowed for statistical purposes vide Order dated 31.05.2017. However,

2 ITA.No.5940/Del./2016 Mohd. Nadeem New Delhi. the said Order was recalled by allowing the M.A. filed by the assessee vide Order dated 03.04.2019. The Departmental Appeal was fixed for hearing.

3.

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 Pending appeals below the specified tax limit may be withdrawn/not pressed.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 ITA.No.5940/Del./2016 Mohd. Nadeem New Delhi. 4. In the result, appeal of the Department dismissed.

Order pronounced in the open Court.

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