What did the Tribunal hold?

The Tribunal held that the Departmental appeals were not maintainable due to the low tax effect, as per CBDT instructions. The cross objections filed by the assessee were also dismissed as withdrawn.

The Department appealed against the deletion of additions made for bogus purchases. The tax effect in these appeals was below the monetary limit prescribed by CBDT circulars for filing appeals.

What were the issues?

Maintainability of departmental appeals before the ITAT in light of CBDT circulars regarding monetary limits for appeals.

DCIT vs M/S. Metro Tyres Ltd., New Delhi | ITAT Delhi 2019

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

Before: SHRI BHAVNESH SAINI, J.M. & SHRI O.P. KANT, A.M.

Hearing: 29.01.2019Pronounced: 29.01.2019

2 ITA.Nos.5350 & 5351/Del./2015 & C.Os.59 & 60/Del./2016 M/s. Metro Tyres Ltd., New Delhi. ORDER PER BHAVNESH SAINI, J.M.

Both the Departmental Appeals are directed against the different Orders of the Ld. CIT(A)-24, New Delhi, Dated 08.06.2015 for the A.Ys. 2006-2007 and 2007-2008, challenging the deletion of addition of Rs.46,60,000/- and Rs.56,10,000/- on account of bogus purchases respectively.

Learned Counsel for the Assessee did not press the cross objections and the same are accordingly dismissed as withdrawn.

Admittedly, the tax effect in the present appeals is less than Rs.20 lakhs. Vide Circular No.3/2018Dated 11th July, 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 Pending appeals below the specified tax limit may be withdrawn/not pressed.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.

3 ITA.Nos.5350 & 5351/Del./2015 & C.Os.59 & 60/Del./2016 M/s. Metro Tyres Ltd., New Delhi. D.R. in view of the Board’s Circular above did not press the Departmental Appeals and seeks permission to withdraw the appeals. The case of the Department would not fall in the exceptions provided in the above Board Circular. In the result, the Departmental appeals are not maintainable as the appeals are filed against the Board instructions referred to above and therefore, the appeals of the Department are liable to be dismissed.

In the result, appeals of the Department are dismissed.

To sum-up, Appeals of the Department are dismissed and Cross Objections of the Assessee are dismissed as withdrawn.

Order pronounced in the open Court.

DCIT, NEW DELHI vs. M/S. METRO TYRES LTD., NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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