ITO, NEW DELHI vs. M/S. RAGHVENDER SHANKAR FINANCE & INVESTMENT CO. PVT. LTD., NEW DELHI

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ITA 5553/DEL/2015Status: DisposedITAT Delhi18 October 2018AY 2010-113 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 in the appeal was below the revised monetary limit prescribed by the CBDT for filing appeals. Therefore, the Tribunal dismissed the Revenue's appeal without going into the merits of the case.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2010-11. The assessee's counsel requested dismissal of the appeal due to low tax effect, citing a CBDT circular.

What were the issues?

Whether the Revenue's appeal should be dismissed on the grounds of low tax effect as per the prevailing CBDT circular.

AI-generated summary — verify with the full judgment below

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

Before: SH. H.S. SIDHU & SH. L.P. SAHU

Department by None Assessee by Sh. Abhishek Mathur, Adv. ORDER PER H.S. SIDHU, J.M.:

This appeal by the Revenue against the impugned order passed by the Ld. CIT(A)-11, New Delhi in relation to assessment year 2010-11.

2.

Earlier this case was fixed for hearing on 14.6.2018 and was adjourned for today. Today i.e. on 18.10.2018 none appeared on behalf of the Department to prosecute the matter in dispute, nor filed any application for adjournment. Keeping in view the facts and circumstances of the present case and the issue involved in the present Appeal, we are of the view that no useful purpose would be served to issue notice again to the Revenue, therefore, we are deciding the present appeal exparte qua assessee, after hearing the Ld. Counsel for the Assessee and perusing the records.

3.

Ld. Counsel for the assessee submitted that the tax involved in the present appeal is less than the prescribed limit fixed by the CBDT. Hence, he requested to dismiss the Revenue’s Appeal on account of low tax effect.

4.

We have heard the Ld. Counsel for the assessee and perused the relevant material on record. It is noticed that recently 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.

5.

From the afore-noted 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 appeal filed before the ITAT, wherein tax effect is less than Rs.20,00,000/-. Going by the prescription of the afore-noted Circular, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/- for not filing the appeal before the Tribunal. Accordingly, we dismiss the instant appeal filed by the Revenue without going into merits of the case. However, the Department is at liberty to file Miscellaneous Application, if the tax effect is found to be more than the prescribed limited of Rs.20,00,000/- or otherwise. Accordingly, the appeal of the Revenue stands dismissed.

6.

In the result, the appeal of the Revenue stands are dismissed. The decision is pronounced on 18th October, 2018.

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