ITO, MUZAFFARNAGAR vs. SMT. RENU GUPTA, MUZAFFARNAGAR

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ITA 1905/DEL/2016Status: DisposedITAT Delhi26 November 2018AY 2007-083 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 noted that the tax effect was below the prescribed limit. However, the Revenue requested permission to withdraw the appeal, citing departmental instructions and a modified circular allowing for contestation in specific circumstances.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) for AY 2007-08. The tax effect involved was less than Rs. 20,00,000/-, which is generally below the threshold for appeals.

What were the issues?

Whether the Revenue's appeal, with a tax effect below the prescribed limit, should be dismissed or if it falls under exceptions allowing for contestation.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘B’, NEW DELHI

Before: SH. H.S. SIDHU & SH. O.P. KANT

For Appellant: Ms. Ashima Neb, Sr.DR
Hearing: 26.11.2018Pronounced: 26.11.2018

Appellant by Ms. Ashima Neb, Sr.DR Respondent by Sh. V. Raja Kumar, Adv. Date of hearing 26.11.2018 Date of pronouncement 26.11.2018 ORDER

PER O.P. KANT, AM:

1.

The present appeal has been filed by the Revenue against the order dated 29.01.2016 passed by CIT(A), Muzaffarnagar, pertaining to the assessment year 2007-08. It has been identified by the Registry that the tax effect involved in the present appeal is less than Rs.20,00,000/-.

2.

During the course of hearing, the learned Sr. DR submitted that no doubt tax effect involved in the appeal is less than Rs.20 lakhs, thus, bound by the departmental instruction, the appeal has to be withdrawn. However, attention was invited to para 10 of the Circular No. 3/2018, dated 11th July, 2018, which has been Circular dated 20th August, 2018 and in terms of the said modification the Departmental Representatives made a prayer that permission to pray for recall of the order may be granted in case any of the conditions in the reports made available by the A.O. subsequently, show that the issues were required to be contested. The modified para is extracted hereunder: “10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account. (e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI). (f) Cases where prosecution has been filed by the Department and is pending in the Court. ”

3.

Accepting the said request, the appeal is dismissed as infructuous. While so directing, it is made clear that the Department is at liberty to file Miscellaneous Application, if the tax effect is found to be more than the prescribed limit of Rs.20,00,000/- or any of the conditions etc., as available in the amendment carried out in para 10 of Circular No. 3/2018, dated 20.08.2018, is made out.

4.

In the result, the appeal of the Revenue is dismissed.

Order is pronounced in the open court on 26th November, 2018.

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