DCIT, NEW DELHI vs. M/S. TRAVEL SECURITY SERVICES INDIA PVT. LTD., NEW DELHI

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ITA 372/DEL/2016Status: DisposedITAT Delhi10 October 2018AY 2011-123 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 as per CBDT Circular No. 3 of 2018, the Department should not file appeals where the tax effect does not exceed Rs. 20 lakhs. The Senior DR did not press the appeal in light of this circular.

What were the facts?

The Revenue filed an appeal against an order of the Disputes Resolution Panel which reduced an addition made by the Assessing Officer. The tax effect of the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the departmental appeal is maintainable given the low tax effect and the CBDT's instructions regarding monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “I-2” : DELHI

Before: SHRI BHAVNESH SAINI, J.M. & SHRI L.P. SAHU, A.M.

Hearing: 10.10.2018Pronounced: 10.10.2018

For Revenue : Shri H.K. Choudhary, CIT-DR For Assessee : Shri Sahil Sharma, Advocate Date of Hearing : 10.10.2018 Date of Pronouncement : 10.10.2018 ORDER PER BHAVNESH SAINI, J.M.

This appeal by Revenue has been directed against the Order of the DCIT, Circle-25(2), New Delhi, Dated 30.11.2015 under section 143(3) r.w.s. 144C(4) of the I.T. Act, 1961, passed in pursuance to the Order of Disputes Resolution Panel-2, New Delhi, Dated 12.10.2015, challenging

2 ITA.No.372/Del./2016 M/s. Travel Security Services India Pvt. Ltd., New Delhi. the Order of the Disputes Resolution Panel in directing the A.O. to complete assessment by reducing the addition to Rs.46,00,511/- in place of original recommended ALP of Rs.92,95,316/-.

2.

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. Learned Sr. D.R. in view of the above Board Circular did not press the Departmental Appeal. 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 3 ITA.No.372/Del./2016 M/s. Travel Security Services India Pvt. Ltd., New Delhi.

have been filed against the instruction of the Board. The Departmental Appeal is dismissed as withdrawn/not pressed by the Learned Sr. D.R.

3.

In the result, appeal of the Revenue is dismissed.

Order pronounced in the open Court.

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