ITO, NEW DELHI vs. M/S. CEE PEE CREATIONS PVT. LTD., NEW DELHI

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ITA 601/DEL/2017Status: DisposedITAT Delhi11 March 2019AY 2012-134 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 ex-parte order, acknowledging the tax effect was higher than initially considered. Subsequently, based on a revised CBDT circular, the appeal was dismissed as the tax effect was below the new monetary limit.

What were the facts?

The revenue filed a miscellaneous application requesting recall of an ex-parte order due to low tax effect. The Tribunal initially dismissed the appeal inadvertently despite the tax effect being over Rs. 10 lacs.

What were the issues?

Whether an ex-parte order should be recalled due to a higher-than-initially-assessed tax effect. Whether a pending appeal should be dismissed based on revised CBDT 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, NEW DELHI

Before: SH. R.K PANDA

For Respondent: Ms. Rinku Singh, Sr. DR
Hearing: 08/03/2019Pronounced: 11/03/2019
1.

The revenue through this Miscellaneous Application requests the Tribunal to recall the ex-parte order passed by it on the ground of low tax effect.

2. None appeared on behalf of the assessee despite service of notice. I, therefore, proceed to decide the miscellaneous application and the appeal on the basis of material available on record and after hearing the Ld. DR.

3. The Ld. DR referring to the contents of the miscellaneous application submitted that the tax effect involved in the appeal is Rs.10,91,800/- which is more than Rs.10 lacs and therefore, the order passed by the Tribunal on 18.05.2017 being not in accordance with the CBDT instruction No.21/2015 dated 10.12.2015 should be recalled.

4.

I have considered the arguments advanced by the Ld. DR and perused the material available on record. I find that the Tribunal inadvertently dismissed appeal filed by the revenue on account of low tax effect whereas the tax involved in the appeal is more than Rs. 10 lacs as it was prescribed at the time for withdrawal of the appeal by the revenue. I therefore, recall the order of the Tribunal and the miscellaneous application filed by the revenue is accordingly allowed.

5.

In the result, the miscellaneous application filed by the revenue is allowed. 2

After hearing the Ld. DR and on perusal of the orders of the lower authorities, I find the tax effect involved in the instant appeal is Rs.10,91,800/- as per miscellaneous application filed by the revenue.

2.

The Ld. DR fairly conceded that the tax effect involved in the appeal filed by the revenue is below Rs.20,00,000/-. The CBDT vide circular No.03/2018 [F.No.279/Misc.142/2007-ITJ (Pt.)] dated 11.07.2018 has revised the monetary limit to Rs.20,00,000/- for filing of the appeals by the department before ITAT. 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/- will be treated as withdrawn. Since in the instant case the tax effect 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.

3.

In the result, the appeal filed by the revenue is dismissed.

Order pronounced in the open court at the time of hearing itself i.e. on 08.03.2019.

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