DCIT, NEW DELHI vs. M/S. VIJAY PAL GARG, NEW DELHI

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ITA 548/DEL/2016Status: DisposedITAT Delhi09 April 2019AY 2009-103 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 Department should not file appeals where the tax effect does not exceed Rs. 20 lakhs, as per CBDT Circular No. 3/2018. The Revenue's appeal was not pressed in view of this circular.

What were the facts?

The Revenue filed an appeal against the cancellation of penalty under section 271(1)(c) of the Income Tax Act. The tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect and the CBDT circular restricting appeals below a certain monetary limit.

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 “D”: DELHI

Before: SHRI BHAVNESH SAINI & SHRI PRASHANT MAHARISHI

Hearing: 09.04.2019Pronounced: 09.04.2019

PER BHAVNESH SAINI, J.M. This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-23, New Delhi, Dated 17.11.2015, for the A.Y. 2009-2010, challenging the cancellation of penalty under section 271(1)(c) of the I.T. Act, 1961, in a sum of Rs.17,54,405/-.

2 ITA.No.548/Del./2016 Shri Vijay Pal Garg, New Delhi.

2.

Admittedly, the tax effect in the present appeal is less than Rs.20 lakhs. Vide Circular No.3/2018 Dated 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 Pending appeals below the specified tax limit may be withdrawn/not pressed.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 is dismissed.

3 ITA.No.548/Del./2016 Shri Vijay Pal Garg, New Delhi.

Order pronounced in the open Court.

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