DCIT, NEW DELHI vs. M/S. NEOSTYLE INTERIORS (P) LTD., NEW DELHI

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ITA 5171/DEL/2015Status: DisposedITAT Delhi10 December 2018AY 2006-073 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 Departmental Appeal was not maintainable as it was filed against CBDT Circular No. 3 of 2018, which directs not to file appeals where the tax effect does not exceed Rs. 20 lakhs. This instruction applies retrospectively to pending appeals.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order quashing the reassessment order. The Assessing Officer had made an addition on account of disallowance of depreciation, but the tax effect was below Rs. 20 lakhs.

What were the issues?

Whether a departmental appeal is maintainable when the tax effect is below the monetary limit prescribed by CBDT circulars, and whether such circulars apply retrospectively to pending appeals.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 143(3),Section 268A

AI-generated summary — verify with the full judgment below

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

Before: SHRI BHAVNESH SAINI, J.M. & SHRI O.P. KANT, A.M.

Hearing: 10.12.2018Pronounced: 10.12.2018

For Revenue : Smt. Naina Soin Kapil, Sr. D.R. For Assessee : -None- Date of Hearing : 10.12.2018 Date of Pronouncement : 10.12.2018 ORDER PER BHAVNESH SAINI, J.M. This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-6, Delhi, Dated 20.05.2015, for the A.Y. 2006-2007, challenging the quashing of the re- assessment order under sections 147/148 of the I.T. Act, 1961.

2.

The A.O. in this case passed the assessment order Dated 30.01.2014 under section 143(3)/147 of the I.T.

2 ITA.No.2375/Del./2015 Sidhant Housing & Development Company, New Delhi. Act and computed the income of assessee at (-) Rs.40,83,722/-. The assessee filed return of income at loss of (-) Rs.43,00,820/-. The A.O. made addition on account of disallowance of depreciation in a sum of Rs.Rs.2,17,098/-. Thus, admittedly, the tax effect in the Departmental Appeal is below Rs.20 lakhs. Vide Circular No. 3 of 2018 dated 11.07.2018 issued by CBDT under section 268A of the I.T. Act, it has been directed that 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 the pending appeals and appeals to be filed henceforth in the Tribunal. Pending appeals below the specified tax effect may be withdrawn/not pressed. We may also note that the Appeal of the Department above would not fall within the exceptions provided in the Board Circular. In the result, the Departmental Appeal is not maintainable as have been filed against the instruction of the Board. The Departmental Appeal is dismissed.

3.

In the result, appeal of the Revenue is dismissed.

3 ITA.No.2375/Del./2015 Sidhant Housing & Development Company, New Delhi. Order pronounced in the open Court.

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