ACIT, NEW DELHI vs. SHRI SURENDER ARORA, DELHI

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ITA 5982/DEL/2015Status: DisposedITAT Delhi01 January 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 held that the tax effect in the appeal was below Rs. 20 lakhs, and according to CBDT Circular No. 3/2018, such appeals should not be filed or pressed. Therefore, the departmental appeal was not maintainable.

What were the facts?

The Assessing Officer made an addition of Rs. 46,87,722.36 on account of a low Gross Profit rate. The CIT(A) restricted this addition to Rs. 6,79,359/-. The Revenue appealed this decision to the ITAT.

What were the issues?

Whether the departmental appeal is maintainable before the Tribunal given the tax effect and the CBDT circular regarding monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 268

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “C” NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI O.P. KANT

For Appellant: Shri Amit Katoch, Sr.D.R

This appeal by the Revenue has been directed against the order of ld. CIT(A)-XIX, New Delhi dated 18th August, 2015 for the Assessment Year 2011-12.

2.

In this case, Assessing Officer made addition of Rs.46,87,722.36/- on account of low G.P. rate. Ld. CIT(A) however restricted the addition of Rs.6,79,359/- and thus allowed the appeal of the assessee partly.

3.

Admittedly, the tax effect in the present appeal is less than Rs.20 lakhs. Vide Circular No.3/2018 Dated 11th July, 2018 issued by CBDT u/s.268 of IT Act, 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 Pending appeals below the specified tax limit may be withdrawn/not pressed.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. 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.

Order Pronounced in the open Court on 1st January, 2019.

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