ACIT, NEW DELHI vs. M/S GAHOI BUILDWELL PVT. LTD., NEW DELHI

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ITA 2711/DEL/2013Status: DisposedITAT Delhi29 March 2019AY 2004-053 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 filed by the Revenue was not maintainable due to the tax effect being below the prescribed monetary limit. The Tribunal applied the CBDT circular which has statutory force.

What were the facts?

The Revenue filed an appeal before the ITAT. The disputed amount was Rs. 35,00,000/-, which was less than the revised monetary limit of Rs. 20,00,000/- for filing appeals as per CBDT Circular No. 3/2018.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the tax effect is below the monetary limit prescribed by CBDT circulars.

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 “D”: NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI

For Appellant: Shri Sanjay Kumar,CA, Shri Akarsh Garg, Advocate
For Respondent: Shri J.K. Mishra, DR, Shri Sanjay Kumar,CA, Shri Akarsh Garg, Advocate
Hearing: 13/03/2019

PER AMIT SHUKLA, J.M.: This is an appeal filed by the Revenue directed against the order of Ld. Commissioner of Income Tax (APPEALS) XXXIII New Delhi dated 22.09.2015 pertaining to the assessment year 2004-05.

2.

During the course of hearing, the Ld. DR submitted that though in the grounds of appeal

1.

figure of disputed issue has been wrongly mentioned as Rs. 3,96,76,291/- but the actual disputed amount is Rs. 35,00,000/- which is the addition made by the AO. Thus, he admitted although supported the order of the AO, that tax effect involved in this appeal is less than Rs. 20,00,000/-. The Ld. Counsel appearing for the assessee contended that the present appeal of the Revenue is not maintainable in view of recent Circular of CBDT No. 3/2018 dated 11th July, 2018, whereby the monetary limit of tax effect for not filing appeals before the Tribunal has been revised to Rs. 20,00,000/-. The computation of addition made in the assessment order is as under :- Income as assessed u/s 153A Vide order dated 26.12.2007 = 3,96,76,291/- Add: Unexplained cash credit u/s 68 = 35,00,000/- ------------------ TOTAL INCOME = 4,31,76,291/-

3. Thus, the disputed amount is only Rs. 35,00,000/-. Having considered the rival submissions and the material available on record, including the above circular, we find that the above circular of CBDT on pecuniary limit has been issued in supersession of earlier CBDT Circular No. 21 of 2015 dated 10.12.2015, revising the monetary limit of tax effect from Rs. 10,00,000/- to Rs. 20,00,000/-. These instructions of CBDT have now statutory force within the provisions of section 268A and are made applicable to the pending appeals also by virtue of para 13 of the Circular.

4.

This Circular contains clear instructions to the Department to withdraw or not to press such appeals filed before the ITAT wherein tax effect involved does not exceed Rs. 20,00,000/-. It is not the case of the Revenue that the present appeal comes within the sweep of exclusion clauses as given in para No. 10 & 11 of the said Circular. Thus, going by the prescription of the afore-noted CBDT instructions, and without going into merits of the case, we dismiss the instant appeal filed by the Revenue, being not maintainable, as the tax effect involved in this appeal is less than Rs. 20.00 lacs.

5.

In the result, the appeal of the Revenue stands dismissed as indicated above.

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