ACIT, GURGAON vs. M/S DLF PROJECTS LTD.,(FORMERLY DT PROJECTS LTD), GURGAON

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ITA 2680/DEL/2016Status: DisposedITAT Delhi24 January 2019AY 2011-123 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 noted that the CBDT Circular No. 3/2018 directs the Department not to file appeals where the tax effect is below Rs. 20 lakhs. The Revenue's appeal was therefore not pressed.

What were the facts?

The Revenue filed an appeal against the deletion of disallowances made by the Assessing Officer. 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 CBDT instructions.

AI-generated summary — verify with the full judgment below

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

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

Hearing: 24.01.2019Pronounced: 24.01.2019

ORDER PER BHAVNESH SAINI, J.M. This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-1, Gurgaon, Dated 04.03.2016, for the A.Y. 2011-2012, challenging the deletion of disallowance of Rs.44,07,786/- on account of purchase sundries, administrative expenses and provisions for disallowed material etc.

2 ITA.No.2680/Del./2016 M/s. DLF Projects Limited, Gurgaon.

2.

Admittedly, the tax effect in the present appeal 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 Pending appeals below the specified tax limit may be withdrawn/not pressed.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. D.R. in view of the Board’s Circular above did not press the Departmental Appeal and seeks permission to withdraw the 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.

4.

In the result, appeal of the Department is dismissed.

3 ITA.No.2680/Del./2016 M/s. DLF Projects Limited, Gurgaon.

Order pronounced in the open Court.

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