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Income Tax Appellate Tribunal, DELHI BENCH: ‘G’, NEW DELHI
Before: SH. O.P. KANT & SH. KULDIP SINGH
Date of hearing 09.10.2018 Date of pronouncement 09.10.2018 ORDER PER BENCH: The present appeal and the cross objection have been filed by the Revenue and the assessee respectively against the order dated 21.09.2015 passed by CIT(A)-17, New Delhi, pertaining to the assessment year. It has been identified by the Registry that the tax effect involved in the present appeal is less than Rs.20,00,000/-.
During the course of hearing, the learned CIT(DR) submitted that no doubt tax effect involved in the appeal is less than Rs.20 lakhs, thus, bound CO No.407/Del/2015 by the departmental instruction, the appeal has to be withdrawn. However, attention was invited to para 10 of the Circular No. 3/2018, dated 11th July, 2018, which has been modified by Circular dated 20th August, 2018 and in terms of the said modification the Departmental Representatives made a prayer that permission to pray for recall of the order may be granted in case any of the conditions in the reports made available by the A.O. subsequently, show that the issues were required to be contested. The modified para is extracted hereunder:
10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account. (e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI). (f) Cases where prosecution has been filed by the Department and is pending in the Court.
Accepting the said request, the appeal is dismissed as infructuous. The cross objection filed by the assessee, which is in support of the respective impugned order, is also dismissed as infructuous. While so directing, it is made clear that the Department is at liberty to file Miscellaneous Application, if the tax effect is found to be more than the prescribed limit of Rs.20,00,000/- or any of the conditions etc., as available CO No.407/Del/2015 in the amendment carried out in para 10 of Circular No. 3/2018, dated 20.08.2018, is made out.
In the result, the appeal of the Revenue and the cross objection of assessee are dismissed. Order is pronounced in the open court on 9th October, 2018.