ITO, MEERUT vs. MR. SHAH KHALID, MEERUT

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ITA 2716/DEL/2013Status: DisposedITAT Delhi03 April 2019AY 2009-103 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 recalled its earlier order dismissing the appeal. Subsequently, it held that the appeal was not maintainable due to a low tax effect, as per the latest CBDT circular raising the monetary limit to Rs. 20 lacs for departmental appeals to the ITAT.

What were the facts?

The revenue filed a Miscellaneous Application to recall an earlier order that dismissed their appeal due to low tax effect. The revenue argued the tax effect was above Rs. 10 lacs, warranting a recall. However, upon review, the Tribunal found the tax effect was below Rs. 20 lacs.

What were the issues?

Whether the appeal filed by the revenue should be dismissed on account of low tax effect, considering the prevailing CBDT circulars regarding monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “Friday/A” NEW DELHI

Before: SHRI R. K. PANDA & MS. SUCHITRA KAMBLE

For Respondent: Shri P.V. Gupta, Sr DR

Heard together (2 matters)

MA No.563/Del/2017
ITA No.2716/Del/2013

Read from the judgment's own cause title. This page is filed under one of them.

Tribunal to recall the order passed by it dismissing the appeal filed by the revenue on account of low tax effect.

2.

None appeared on behalf of the assessee. Therefore, the miscellaneous application is being disposed off on the basis of material available on record and after hearing the Ld. DR.

3.

The Ld. DR pointed out that the tax effect involved in the instant appeal filed by the revenue is Rs.11,13,266/- and therefore, the order passed by the Tribunal dismissing the appeal on account of low tax effect in view of CBDT Circular No.21/2015 dated 10.12.2015 deserves to be recalled and the appeal should be decided on merit.

4.

After hearing the Ld. DR and on perusal of the material available on record, we find that the tax effect involved in the appeal filed by the revenue is admittedly above Rs.10 lacs. Therefore, a mistake has been crept in the order of the Tribunal for which we recall the order of the Tribunal.

5.

The miscellaneous application filed by the revenue is accordingly allowed.

6.

After hearing the Ld. DR and on perusal of the orders of the authorities below, we find that the tax effect involved is admittedly below Rs.20 lacs. In view of the CBDT Circular No.03/2018 [F.No.279/Misc.142/2007-ITJ (Pt.)] dated 11.07.2018 raising the monetary limit to Rs.20,00,000/- for filing of the appeal by the department before ITAT the appeal of the revenue is not maintainable. As per para 3 of the said circular it is also clarified that the pending appeals of the department before ITAT having monetary limit of Rs. 20,00,000/- or less will be treated as withdrawn. Since in the instant case the tax effect involved is admittedly below Rs. 20,00,000/-, therefore, in view of the latest CBDT Circular cited (supra) the appeal filed by the revenue is dismissed on account of low tax effect.

7.

In the result, the miscellaneous application filed by the revenue is allowed and appeal filed by the revenue is dismissed.

Order pronounced in the open court on 03.04.2019.

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