What did the Tribunal hold?

The Tribunal dismissed the appeal filed by the Revenue. This was based on CBDT Circular No. 03 of 2018, which revised the monetary limit for filing appeals to the Tribunal to Rs. 20,00,000/- and is applicable retrospectively.

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2012-13. The tax effect involved in the appeal was less than Rs. 20,00,000/-.

What were the issues?

Whether the Revenue's appeal should be dismissed on the grounds of low tax effect as per the revised CBDT circular, without going into the merits of the case.

DCIT vs M/S. Vikas Telecom Ltd., New Delhi | ITAT Delhi 2019

Income Tax Appellate Tribunal, DELHI BENCH: ‘A’, NEW DELHI

Before: SH. H.S. SIDHU & SH. ANADEE NATH MISSHRA

ORDER PER H.S. SIDHU, J.M.:

This appeal by the Revenue is directed against the order dated 12.11.2015 passed by the Ld. CIT(A)-23, New Delhi in relation to assessment year 2012-13.

The learned DR supported the order of the Assessing Officer, but could not controvert the fact that the tax effect involved in this appeal is less than Rs.20,00,000/-.

None appeared on behalf of the Assessee.

We have heard the Ld. DR and perused the relevant material on record. It is noticed that recently the CBDT has issued Circular No. 03 of 2018, dated 11th July, 2018 with retrospective effect, revising the monetary limit to Rs.20,00,000/- for not filing appeals before the Tribunal.

From the afore-noted Circular, it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeal filed before the ITAT, wherein tax effect is less than Rs.20,00,000/-. Going by the prescription of the afore-noted Circular, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/- for not filing the appeal before the Tribunal. Accordingly, we dismiss the instant appeal filed by the Revenue without going into merits of the case. However, the Department is at liberty to file Miscellaneous Application, if the tax effect is found to be more than the prescribed limited of Rs. 20,00,000/- or otherwise. Accordingly, the appeal of the Revenue stands dismissed.

In the result, the appeal of the Revenue is dismissed.

The decision is pronounced on 02.01.2019

DCIT, NEW DELHI vs. M/S. VIKAS TELECOM LTD., NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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