ITO, WARD- 20(3), NEW DELHI vs. RMP HOLDINGS (P) LTD., NEW DELHI

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ITA 3411/DEL/2018Status: DisposedITAT Delhi24 September 2018AY 2008-093 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 appeals filed by the Revenue were not maintainable as the tax effect was below the revised monetary limit of Rs. 20,00,000/- stipulated by CBDT Circular No. 3/2018. The circular has statutory force and applies to pending appeals.

What were the facts?

The Revenue filed appeals before the ITAT challenging the CIT(A) order for assessment years 2008-09 and 2009-10. The tax effect involved in these appeals was less than Rs. 20,00,000/-.

What were the issues?

The primary issue was the maintainability of the Revenue's appeals before the ITAT in light of the revised monetary limits for filing appeals as per 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 “SMC”: NEW DELHI

Before: SHRI AMIT SHUKLA

For Appellant: Shri Surendra Pal, Sr. DR
For Respondent: Shri Suresh Kumar Gupta, Advocate, Shri Surendra Pal, Sr. DR
Hearing: 24/09/2018

These appeals are filed by the Revenue directed against the order of Ld. Commissioner of Income Tax (APPEALS) 38, Delhi dated 28.12.2017 pertaining to the assessment years 2008-09, 2009-10.

2.

During the course of hearing, the Ld. DR although supported the order of the AO, but could not controvert the fact that tax effect involved in these appeals is less than Rs. 20,00,000/-. The Ld. Counsel appearing for the assessee on the other hand contended that the present appeals of the Revenue are not maintainable in view of recent Circular of CBDT No. 3/2018 dated 11th July, 2018, whereby the monetary limit of tax effect for not filing appeals before the Tribunal has been revised to Rs. 20,00,000/-. The disputed amount involved is Rs. 47,00,000/- which is below Rs. 20 lacs.

3.

Having considered the rival submissions and the material available on record, including the above circular, I find that the above circular of CBDT on pecuniary limit has been issued in supersession of earlier CBDT Circular No. 21 of 2015 dated 10.12.2015, revising the monetary limit of tax effect from Rs. 10,00,000/- to Rs. 20,00,000/-. These instructions of CBDT have now statutory force within the provisions of section 268A and are made applicable to the pending appeals also by virtue of para 13 of the Circular.

4.

This Circular contains clear instructions to the Department to withdraw or not to press such appeals filed before the ITAT wherein tax effect involved does not exceed Rs. 20,00,000/-. It is not the case of the Revenue that the present appeal comes within the sweep of exclusion clauses as given in para No. 10 & 11 of the said Circular. Thus, going by the prescription of the afore-noted CBDT instructions, and without going into merits of the case, we dismiss the instant appeals filed by the Revenue, being not maintainable, as the tax effect involved in these appeals is less than Rs. 20.00 lacs.

5.

In the result, the appeals of the Revenue stand dismissed as indicated above.

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