DCIT, NEW DELHI vs. M/S. OUTOKUMPU INDIA PVT. LTD., NEW DELHI

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ITA 183/DEL/2015Status: DisposedITAT Delhi03 October 2018AY 2009-104 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 less than Rs. 20 lakhs, as per CBDT Circular No. 3/2018. The Ld. DR did not press the appeal in light of this circular.

What were the facts?

The Revenue appealed against an order of the CIT(Appeals) that deleted an addition of Rs. 44,58,789/- made by the AO on a transfer pricing issue. The assessee pointed out that the tax effect was below the monetary limit for departmental appeals.

What were the issues?

Whether the departmental appeal is maintainable when the tax effect is below the monetary limit prescribed by CBDT circulars.

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 BENCH: ‘I-2’ NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI L.P. SAHU

For Respondent: Ms. Anchal Khandelwal, Sr. DR
Hearing: 01.10.2018Pronounced: 03.10.2018

ORDER PER SHRI BHAVNESH SAINI, J.M.

This appeal by Revenue has been directed against the order of Ld.CIT(Appeals)-XX, New Delhi dated 27.10.2014 for AY 2009- 10, challenging the order of Ld. CIT(A) in deleting the addition of Rs. 44,58,789/- made by the AO as proposed by the TPO on account of Transfer Pricing issue i.e. comparable companies.

2.

In this case, AO made the addition of Rs. 44,58,789/- in the assessment order u/s 143(3) of the I.T. Act. The assessee filed an application stating therein that the tax effect in the departmental appeal does not exists monetary limit of Rs. 20 lakhs. Therefore, as per Circular No. 3/2018 dated 11.07.2018 the departmental appeal may be dismissed or not pressed by the Department. Ld. DR did not dispute the same.

3.

Admittedly, the tax effect in the present appeal is less than Rs. 20 lakhs. Vide Circular No. 3/2018 dated 11.07.2018 issued by CBDT u/s 268A of I.T. Act, it has been directed that the 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 pending appeals and appeals to be filed henceforth in Tribunals.

Pending appeals below the specified tax limit may be withdrawn/not pressed. The Ld. DR in view of the Board’s Circular above did not press the departmental appeal. The case of the Department would not fall in the exceptions provided in the above Board Circular. In the result, the departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and, therefore, the appeal of the Department is liable to be dismissed.

4.

In the result, the appeal of the Department is dismissed.

Order pronounced in the open court.

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