ITO, WARD-3(3), NOIDA vs. SATISH CHAND, NOIDA

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ITA 5023/DEL/2018Status: DisposedITAT Delhi07 March 2019AY 2009-103 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Department should not file appeals where the tax effect does not exceed Rs. 20 lakhs, as per CBDT Circular No. 3/2018. The Departmental appeal was not pressed and was dismissed.

What were the facts?

The Assessing Officer made an addition of Rs. 17,90,000 to the assessee's income. The CIT(A) allowed the assessee's appeal on a legal issue. The tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

Maintainability of departmental appeal in light of CBDT circular regarding tax effect. Whether the appeal should be pressed when the tax effect is below the prescribed limit.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC” : DELHI

Before: SHRI BHAVNESH SAINI

Hearing: 28.02.2019Pronounced: 07.03.2019

For Revenue : Shri S.L. Anuragi, Sr. D.R. For Assessee : -None- Date of Hearing : 28.02.2019 Date of Pronouncement : 07.03.2019 ORDER This appeal by Revenue has been directed against the order of Learned CIT(A)-1, Noida, Dated 30th April, 2018, for the assessment year 2009-2010.

2.

In this case, A.O. computed the income of assessee at Rs.17,90,000/- by making the addition of similar amount. The Learned CIT(A) on legal issue allowed the appeal of assessee.

3.

Admittedly, the tax effect in the present appeal is less than Rs.20 lakhs. Vide Circular No.3/2018 Dated

2 ITA.No.5023/Del./2018 Shri Satish Chand, Noida.

11thJuly, 2018 issued by CBDT, 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 Pending appeals below the specified tax limit may be withdrawn/not pressed.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.

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