ACIT, CENTRAL CIRCLE- 17, NEW DELHI vs. SDB INFRASTRUCTURE PVT. LTD., NEW DELHI

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ITA 4011/DEL/2018Status: DisposedITAT Delhi01 November 2018AY 2014-153 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 the CBDT's instructions regarding the monetary limit for appeals. Therefore, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal against the deletion of an addition made under Section 14A. The tax effect in the appeal was below Rs. 20 lakhs, which is the monetary limit for filing appeals as per CBDT Circular No. 3 of 2018.

What were the issues?

Whether a departmental appeal is maintainable when the tax effect is below the prescribed monetary limit set by the CBDT, and if such appeals should be withdrawn or not pressed.

Which sections of the Income-tax Act were involved?

Section 14A,Section 268A

AI-generated summary — verify with the full judgment below

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

Before: SHRI BHAVNESH SAINI, J.M. & SHRI PRASHANT MAHARISHI, A.M.

Hearing: 26.10.2018Pronounced: 01.11.2018

For Revenue : -None- For Assessee : Shri Baldev Raj, C.A. Date of Hearing : 26.10.2018 Date of Pronouncement : 01.11.2018 ORDER PER BHAVNESH SAINI, J.M.

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-27, New Delhi, Dated 09.03.2018, for the A.Y. 2014-2015, challenging the deletion of addition of Rs.48,53,405/- on account of disallowance under section 14A of the I.T. Act, 1961.

2 ITA.No.4011/Del./2018 M/s. SDB Infrastructure (P) Ltd., New Delhi.

2.

The assessee moved an application for early hearing of the appeal because the tax effect in the Departmental Appeal is below Rs.20 lakhs. However, none appeared on behalf of the Revenue. The claim of assessee is that the tax effect is below Rs.20 lakhs have not been disputed.

3.

Admittedly, the tax effect in the Departmental Appeal is less than 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

3 ITA.No.4011/Del./2018 M/s. SDB Infrastructure (P) Ltd., New Delhi. against the instruction of the Board. The Departmental Appeal is dismissed.

4.

In the result, appeal of the Revenue is dismissed. Order pronounced in the open Court.

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