ITO, NEW DELHI vs. SHRI DHIRENDER REHNANI, NEW DELHI

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ITA 3036/DEL/2016Status: DisposedITAT Delhi01 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 allowed the Miscellaneous Application. However, it noted that a subsequent CBDT circular revised the monetary limit for appeals to Rs. 20,00,000. Since the tax effect in the appeal was less than this revised limit, the appeal was dismissed as not maintainable.

What were the facts?

The Revenue filed a Miscellaneous Application seeking rectification of a previous order where their appeal was dismissed due to low tax effect. The Revenue argued that the tax effect was actually Rs. 15,93,017, exceeding the then-applicable Rs. 10 lakh limit for filing appeals.

What were the issues?

Whether the appeal was maintainable based on the tax effect and the applicability of revised CBDT circulars regarding monetary limits for filing appeals.

Which sections of the Income-tax Act were involved?

Section 254(2),Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES: Bench ‘Friday’, NEW DELHI

Before: SHRI R.K.PANDA & SMT. BEENA A PILLAI

Hearing: 01/03/2019Pronounced: 01/03/2019

Heard together (2 matters)

M.A.No. 97/Del/2018
ITA No. 3036/Del/2016

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

ORDER

PER BEENA A PILLAI, JUDICIAL MEMBER

1.

The present Misc. Application is filed by Revenue u/s 254(2) of the Income Tax Act, 1961, seeking rectification of mistake in order dated 14.11.2017 in A.Y. 2011-12 challenging the tax effect involved in the appeal was Rs.15,93,017/- and the appeal was mistakenly dismissed tax effect being low. 2. None was present on behalf of assessee. Heard Ld.Sr.D.R.

3.

Revenue is challenging that the tax effect involved is Rs.15,93,017/- i.e. more than Rs.10 lakhs statutory limit.

3.1. Accordingly M.A. stands allowed.

4.

It is found that pursuant to mandate of section 268A, CBDT has issued Circular No. 03 of 2018, dated 11th July, 2018 with retrospective effect, revising monetary limit to Rs.20,00,000/- for not filing appeals before the Tribunal. It is further found that as tax effect involved in instant appeals is less than Rs.20,00,000/-, they are not maintainable. The Ld.Sr.D.R., although supported order of Ld.AO, could not controvert the fact that tax effect involved in the appeal is less than Rs.20,00,000/-. 4.1. On Going through above referred CBDT Circular, it is clear that it is applicable to all pending appeals with retrospective effect, and there is clear- cut direction to Department to either withdraw, or not press such appeals filed before the Tribunal, wherein tax effect is less than Rs.20,00,000/-. We are, therefore, of the view that Revenue should have either not filed instant appeal, or withdraw the same, as tax effect in the appeal is admittedly less than Rs. 20,00,000/-. 4.3. Accordingly, appeal filed by revenue stands dismissed. Order pronounced in the Open Court on 01/03/2019. Sd/- Sd/- (R.K.PANDA) (BEENA A PILLAI) Accountant Member Judicial Member Dated: 01st March, 2019.

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