DCIT (EXEMPTION), NEW DELHI vs. M/S. PRAKASH EDUCATIONAL SOCIETY, NEW DELHI

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ITA 4890/DEL/2016Status: DisposedITAT Delhi29 April 2019AY 2013-143 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The Tribunal held that the appeal should not have been filed or should have been withdrawn as the tax effect was below the prescribed limit. Therefore, the appeal was dismissed without going into the merits of the case.

What were the facts?

The Revenue filed an appeal before the ITAT, but during the hearing, the Departmental Representative conceded that the tax effect was below the prescribed limit for appeals. The Revenue sought permission to withdraw the appeal based on departmental instructions.

What were the issues?

The primary issue was whether the appeal filed by the Revenue was maintainable given the low tax effect, in light of departmental circulars regarding monetary limits for appeals.

AI-generated summary — verify with the full judgment below

Before: Shri Amit Shukla & Shri L.P. Sahu

Hearing: 29.04.2019Pronounced: 29.04.2019

ORDER Per L.P. Sahu, A.M.: This appeal is filed by the Revenue against the order passed by learned CIT(A)-40, New Delhi for the assessment year 2013-14.

2.

Heard the ld. DR. None is present on behalf of the assessee.

3.

During the course of hearing, the Ld. DR submitted that there is no doubt that tax effect involved in this appeal is less than Rs.20 lakhs, thus, bound by the departmental instruction, the appeal has to be withdrawn. However, attention was invited to para 10 of the Circular No. 3/2018, dated 11th July, 2018, which has been modified by Circular dated 20th August, 2018 and in terms of the said modification the Departmental Representative made a prayer that permission to pray for recall of the order may be granted in case any of the conditions in the reports made available by the A.O. subsequently, show that the issues were required to be contested. The modified para is extracted hereunder: “10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:

(a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account.

(e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI).

(f) Cases where prosecution has been filed by the Department and is pending in the Court. ”

4.

Going by the prescription of Circular No. 3/2018, dated 11th July, 2018, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in the appeal is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/-. Accordingly, we dismiss the appeal filed by the Revenue without going into merits of the case. However, it is made clear that the Department is at liberty to file Miscellaneous Application, if the tax effect is found to be more than the prescribed limit of Rs.20,00,000/- or any of the conditions etc., as available in the amendment carried out in para 10 of Circular No. 3/2018, dated 20.08.2018, is made out. Accordingly, the appeal of the Revenue deserves to be dismissed as non-maintainable.

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