Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI BENCH: ‘A NEW DELHI
Before: SHRI N.K.SAINI & SHRI K.NARASIMHA CHARY
2 ORDER PER K.NARASIMHA CHARY These appeals filed by the Revenue are directed against the orders passed by the Learned Commissioner of Income-tax(Appeals)-XXXIII, New Delhi and Learned Commissioner of Income-tax(Appeals)-XXX, New Delhi respectively (“CIT(A)”) in relation to Assessment Year 2006-07.
At the outset, the learned counsel for the assessees submitted that these appeals of the revenue are not maintainable as the tax effect involved in these cases is less than Rs.20 lacs, in view of the Low Tax effect of the appeal and the impact of Circular No. 03 of 2018, dated 11th July, 2018 issued by the CBDT thereon.
We have heard the parties. It is found that pursuant to the mandate of section 268A, the CBDT has issued Circular No. 03 of 2018, dated 11th July, 2018 with retrospective effect, revising the monetary limit to Rs.20,00,000/- for not filing appeals before the Tribunal. It is further found that as the tax effect involved in the instant appeal is less than Rs.20,00,000/-, the extant appeal is not maintainable. The ld. D.R., although supported the order 3 of the Assessing Officer, but could not controvert the fact that tax effect involved in this appeal is less than Rs.20,00,000/-.
Going by the prescription of the aforenoted Circular, it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT, wherein tax effect is less than Rs.20,00,000/-. We are, therefore, of the view that the Revenue should have either not filed the instant appeals before the Tribunal or withdrawn the same as the tax effect in this case is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/- for not filing the appeal. Accordingly, we dismiss the instant appeal without going into merits of the case.
The ld. DR has brought to our notice a letter dated 20.08.2018 of the Director (ITJ), CBDT, New Delhi addressed to All the Principal CCITs in which para no. 10 of the earlier Circular dated 11.7.2018, enumerating certain instances in which the appeals should be contested notwithstanding the low tax effect, has been revised. He, however, could not place any material on record to demonstrate that the above appeal is covered by the amended para of the Circular. Under these circumstances, we dismiss the appeals filed by the Revenue and give liberty to the Department to file Miscellaneous Applications, if it is