ACIT, NEW DELHI vs. M/S. SAHARA ONE MEDIA & ENTERTAINMENT LTD., MUMBAI

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ITA 1164/DEL/2016Status: DisposedITAT Delhi13 March 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The Tribunal held that the Revenue should have either not filed the appeal or withdrawn it, as the tax effect was below the prescribed limit for filing appeals. Therefore, the appeal was dismissed without going into the merits of the case.

What were the facts?

The Revenue filed an appeal before the ITAT, but during the hearing, it was acknowledged that the tax effect was less than Rs. 20 lakhs. The Revenue's counsel sought permission to withdraw the appeal based on departmental instructions.

What were the issues?

The primary issue was whether the appeal should be dismissed due to a low tax effect, as per departmental circulars, despite the Revenue's request to contest it under certain exceptions.

AI-generated summary — verify with the full judgment below

Before: Shri H.S. Sidhu & Shri L.P. Sahu

Hearing: 13.03.2019Pronounced: 13.03.2019

ORDER Per L.P. Sahu, A.M.: This appeal is filed by the Revenue against the order passed by learned CIT(A)-23, New Delhi for the assessment year 2011-12.

2.

Heard both the parties and perused the record.

3.

During the course of hearing, the Ld. Sr. DR submitted that there is no doubt that tax effect involved in this appeal is less than Rs.20 lakhs, thus, bound by the departmental instruction, the appeal has to be withdrawn. However, attention was invited to para 10 of the Circular No. 3/2018, dated 11th July, 2018, which has been modified by Circular dated 20th August, 2018 and in terms of the said modification the Departmental Representatives made a prayer that permission to pray for recall of the order may be granted in case any of the conditions in the reports made available by the A.O. subsequently, show that the issues were required to be contested. The modified para is extracted hereunder:

“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. ”

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