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Income Tax Appellate Tribunal, DELHI BENCH ‘E’ : NEW DELHI
Before: SHRI R.S.SYAL, HON’BLE & SHRI LALIET KUMAR
PER LALIET KUMAR, JUDICIAL MEMBER :
The present appeal is filed by the revenue challenged the assessee on the following grounds :- “1. The order of Learned CIT(Appeals) is erroneous & contrary to facts & Law. 2.On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 7,29,899/- made on account of depreciation. 2.1 The Ld. CIT(A) ignored the finding recorded by the Assessing Officer and the fact that the assets were not put to use during the year.
3. On the facts in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 7,29,899/- made on account of depreciation. 3.1 The Ld. CIT(A) ignored the finding recorded by the Assessing Officer and the fact that the assets were not put to use during the year.
4. On the facts and in the circumstances of the case in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 5,38,287/- made on account of bad assets. 4.1 The Ld. CIT(A) ignored the findings recorded by the Assessing Officer and the fact that the assessee could not file any evidence support of its contention that the defective goods were returned. 5. On the facts and in the circumstances of the case in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 11,33,760/- being the 10% of legal expenses. 5.1 The Ld. (A) ignored the finding recorded by the Assessing Officer and the fact that the assessees could not justify the huge expenses during assessment proceedings. 6. On the facts in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 57,725/- made on account of depreciation car sold during the year. 6.1 The Ld. CIT(A) ignored the finding recorded by the Assessing Officer and the fact that as per I.T. Act no depreciation is allowed on assets sold during the year. 7. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 13,77,297/- made on account of warranty expenses.
7.1 The Ld. CIT(A) ignored the finding recorded by the Assessing Officer and the fact that the assessee did not file the necessary details during the assessment proceeding to substantiate its claim.”
The perusal of the above, it is clear that the total amount for which the present appeal is filed by Rs. 7,29,899/- + 5,38,287/-+ 11,33,760/-+57,725/-+ 13,77,297/-. Making total for Rs. 3,836,968/- . As the above and the total tax demand on the search, deletion of the addition made by the Assessing Officer would be less than 20 lakhs then similarly the CBDT Circular No.3/2018 dated 11th July, 2018 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.20,00,000/- and this factual position has been fairly conceded by the Ld. D.R. The Ld. A.R. contended that the appeal of the Revenue may be dismissed in the light of CBDT Circular (supra).
After perusing the materials available on record, we find that the amount disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 3/2018 dated 11.07.2018 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 3/2018 dated 11.07.2018 and the materials available on record, Ld. Sr. DR could not point out as to how and why such a Circular is not applicable to the facts of the case. We also find that the Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. We find that the Circular is binding on the tax authorities. Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No. 3/2018 dated 11.07.2018. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as unadmitted, without going into the merits of the case.
In the result, appeal of the revenue is dismissed. Order pronounced in open court on this 09th October, 2018.