ACIT, NEW DELHI vs. M/S. MEHROTRA INVOLIN INDIA PVT. LTD., NEW DELHI

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ITA 3591/DEL/2016Status: DisposedITAT Delhi18 April 2019AY 2011-122 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 dismissed the appeal filed by the Revenue. This was based on a CBDT circular directing the Department not to file appeals where the tax effect is below Rs. 20 lakhs.

What were the facts?

The Revenue filed an appeal against the deletion of disallowance under Section 14A. 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's instructions regarding monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

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

Before: SHRI BHAVNESH SAINI & SHRI N.K. BILLAIYA

Hearing: 18.04.2019Pronounced: 18.04.2019

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-29, New Delhi, Dated 23.03.2016, for the A.Y. 2011-2012, challenging the deletion of disallowance of Rs.37,11,361/- under section 14A of the Income Tax Act, 1961.

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 2 ITA.No.3591/Del./2016 M/s. Mehrotra Invofin India P. Ltd., New Delhi. 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 Pending appeals below the specified tax limit may be withdrawn/not pressed.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.

Order pronounced in the open Court.

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