ACIT (E), GHAZIABAD vs. M/S SHREE BANKEY BIHARI EDUCATIONAL SOCIETY, GHAZIABAD

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ITA 3668/DEL/2015Status: DisposedITAT Delhi14 March 2019AY 2011-124 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The Tribunal held that the appeal should have been withdrawn or not pressed by the Revenue as per CBDT Circular No. 3/2018. Since the appeal did not fall under any of the exceptions listed in the amended instructions, it was dismissed in limine.

What were the facts?

The Department preferred an appeal against the CIT(A)'s order for AY 2011-12. The tax effect in the appeal was below the monetary limit specified by CBDT Circular No. 3/2018.

What were the issues?

Whether the Department's appeal, with a tax effect below the prescribed monetary limit, should be dismissed in limine as per CBDT circulars, or if it falls under any exceptions allowing it to be contested.

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 ‘B’ NEW DELHI

Before: SHRI ANADEE NATH MISSHRA & SHRI SUDHANSHU SRIVASTAVA

For Appellant: Shri Pushkar Pandey, Adv
For Respondent: Ms Ashima Neb, Sr. DR, Shri Pushkar Pandey, Adv
Hearing: 11.03.2019Pronounced: 14.03.2019

PER SUDHANSHU SRIVASTAVA, J.M. This appeal is preferred by the department against the order dated 30.03.2015 passed by the Ld. Commissioner of Income Tax (Appeals), Ghaziabad for assessment year 2011-12. Admittedly, the tax effect in the appeal is below the monetary limit of Rs. 20 lakhs.

1.

2.1 In terms of CBDT Circular No. 3/2018 dated 11th July, 2018 read with Section 268 A of the Income Tax Act, 1961, this appeal by the Revenue should have been withdrawn or should not have been pressed by the Revenue.

2.2 We also note that vide CBDT’s Instructions dated 20.08.2018 bearing F.No. 279/Misc.142/2007-ITJ(Pt), there has been an amendment to para 10 of the Circular No. 3 of 2018 dated 11.07.2018 wherein the said para 10 has been amended as under:-

“10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect.

(a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board’s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/undisclosed foreign bank account.

(e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/DRI/SFIO/Directorate General of GST Intelligence (DGGI).

(f) Cases where prosecution has been filed by the Department and is pending in the Court. ”

2.3 However, after going through the records before us, we are of the opinion that apparently the Department’s Appeal is not covered by any of the aforesaid exceptions as enumerated in the aforesaid amendment to the Instructions and, therefore, delaying the disposal of the appeal by waiting for the Report from the Field Officers will not be in true spirit of the Circular. Accordingly, we deem it fit to treat this Appeal as dismissed with the liberty to the Department to seek recall of this order by filing a Misc.

Application before us in case the Department’s Appeal falls in any of the above exceptions. Accordingly, in view of the CBDT’s Circular No. 3 of 2018 dated 11.7.2018, the appeal by the Revenue is dismissed in limine.

3.

In the result, the appeal of the revenue stands dismissed.

Order pronounced in the open court on 14th March, 2019.

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