DCIT, NEW DELHI vs. M/S DHANUKA LABORATORIES LTD., NEW DELHI

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ITA 162/DEL/2016Status: DisposedITAT Delhi19 September 2018AY 2011-123 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 filed by the Revenue is not maintainable due to the low tax effect, as per CBDT Circular No. 03/2018. The Revenue was granted liberty to file a Miscellaneous Application for revival if the case falls under amended exceptions.

What were the facts?

The Revenue filed an appeal before the ITAT. The tax effect of the appeal was found to be below Rs. 20,00,000/-. The Revenue's counsel admitted that the appeal should be dismissed due to low tax effect.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect in light of CBDT Circular No. 03/2018.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

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

Before: SHRI G.D. AGRAWAL, HON’BLE & SHRI K.N. CHARY

For Respondent: DR Assessee by Sh. Sandeep Nagar, CA
Hearing: 19.09.2018Pronounced: 19.09.2018

ORDER PER K. NARASIMHA CHARY, J.M.

This appeal by the Revenue is preferred against the order of the Commissioner of Income Tax [Appeals]-III, Delhi, dated 10.01.2012 for Assessment Year 2009-10.

2.

It was seen that tax effect of the appeal filed by the revenue is below Rs.20,00,000/-Therefore, the ld. DR was asked as to why the appeals filed by the revenue should not be dismissed due to low tax effect in the light of the recent CBDT Circular No.03/2018 dated 11th July,2018.

3.

The Ld. CIT (DR) fairly admitted that the tax effect involved in the impugned appeal is less than Rs.20 lakhs and therefore, the appeal filed by the Revenue have to be dismissed. He, however, requested that if at any point of time it is noticed that the case of the Revenue falls under any of the amended para 10 of the Circular vide Notification

20.08.2018, the Revenue should be allowed to file Miscellaneous Application for revival of the appeal.

4.

After hearing the Ld. DR and on perusal of the material available on record we find the tax effect involved in the grounds raised by the Revenue in each of the impugned appeal is admittedly below Rs.20 lakhs. Therefore, the appeal filed by the Revenue is not maintainable in view of the CBDT Circular No.03/2018 dated 11th July, 2018 which is applicable even to pending appeals. However, if the Revenue at any point of time finds that the case of the Revenue falls under any of the clauses as per amended para 10 of the said Circular vide Notification dated 20.08.2018, the Revenue is at liberty to file Miscellaneous Application for revival of the appeal. The appeals filed by the revenue are accordingly dismissed.

5.

In the result, the appeal filed by the Revenue is dismissed in the terms indicated above. Order pronounced in the open Court on 19.09.2018

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