ITO (EXEMPTIONS), GHAZIABAD vs. M/S. OM CHARITABLE TRUST, MEERUT

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ITA 88/DEL/2015Status: DisposedITAT Delhi26 September 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 held that the appeal of the Revenue deserved to be dismissed in limine due to the low tax effect, as per CBDT Circular No. 3/2018. The circular was found to be binding on tax authorities and applicable retrospectively to pending appeals.

What were the facts?

The Revenue preferred an appeal before the Income Tax Appellate Tribunal challenging an order of the Commissioner of Income-tax (Appeals). The tax effect involved in the case was Rs. 18,93,236, which was below the threshold prescribed by CBDT Circular No. 3/2018.

What were the issues?

The primary issue was the applicability of CBDT Circular No. 3/2018, which sets monetary limits for preferring appeals, to the present case with a low tax effect.

AI-generated summary — verify with the full judgment below

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

Before: SHRI G.D. AGRAWAL & SHRI K.NARASIMHA CHARY

For Appellant: Shri K.Sampath, AR
For Respondent: Ms. Rashmita Jha, Sr. DR, Shri K.Sampath, AR
Hearing: 26.09.2018Pronounced: 26.09.2018

ORDER PER K.NARASIMHA CHARY, JM Challenging the order of the learned Commissioner of Income-tax (Appeals), Meerut (for short “Ld. CIT(A)) dated 13.10.2014, Revenue preferred this appeal.

2.

We have heard the assessee and perused the material on record. As is seen from the record, it came to our notice that the tax effect involved in this case is Rs. 18,93,236/-, being less than Rs.20 lacs, which squarely falls within the ambit of Circular No.3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes prescribing the tax effect for preferring appeals before Tribunal by the revenue.

3.

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. 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.

4.

In the result, Appeal is dismissed.

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