DCIT, NEW DELHI vs. M/S. JINDAL STAINLESS STEELWAY LTD, NEW DELHI

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ITA 1123/DEL/2015Status: DisposedITAT Delhi10 December 2018AY 2009-102 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 CBDT circular is binding on the Revenue authorities. Since the tax effect in the appeal was below the prescribed monetary limit, the appeal was not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). At the hearing, the Revenue pointed out that the tax effect was less than Rs. 20 lakhs, which is the monetary limit for filing appeals as per CBDT Circular No. 03/2018.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable given the tax effect was below the threshold stipulated in the CBDT circular for filing appeals.

Which sections of the Income-tax Act were involved?

N/A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “D”: NEW DELHI

Before: SMT DIVA SINGH & SHRI PRASHANT MAHARISHI

For Appellant: Shri Ajay Vohra, Sr. Adv, Shri Rohit Jain, Adv
For Respondent: Smt Naina Soin Kapil, Sr. DR, Shri Ajay Vohra, Sr. Adv, Shri Rohit Jain, Adv
Hearing: 12/09/2018Pronounced: 10/12/2018

O R D E R PER PRASHANT MAHARISHI, A. M.

1.

This appeal is filed by the revenue against the order of the ld CIT(A)-V, New Delhi dated 29.01.2015 for the Assessment Year 2009-10.

2.

At the outset of the hearing itself, the ld. DR brought to our attention that CBDT vide Circular No.03/2018 dated 11TH July 2018 has decided that the revenue would not prefer an appeal before the Tribunal if the tax effect is less than Rs.20 lakhs. Therefore, he pleaded that the appeal of the revenue be decided as per the instruction of the CBDT. Ld AR also reiterated same facts.

3.

We have heard both the sides on the issue and perused the material. We find that the CBDT vide circular dated 11th July 2018 has revised the monetary limit for filing the appeal by the department before Income Tax Appellate Tribunal, Hon’ble High Courts and Hon’ble Supreme Court. The relevant para of the aforesaid circular is reproduced as under :- “3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder :- Page | 1 Sl.No. Appeals in Income-tax Monetary Limit(in matters Rs.) 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1,00,00,000 It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.”

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