ITO, WARD- 1(2), MUZAFFARNAGAR vs. BRIJESH KUMAR, MUZAFFARNAGAR

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ITA 2744/DEL/2018Status: DisposedITAT Delhi19 September 2018AY 2014-1512 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 due to the low tax effect, as per CBDT Circular No. 3/2018. The appeals were dismissed on this ground.

What were the facts?

The Revenue filed multiple appeals before the Income Tax Appellate Tribunal (ITAT). The appeals were based on the low tax effect, which was below the threshold stipulated by the CBDT.

What were the issues?

Whether appeals filed by the Revenue with a low tax effect are maintainable before the ITAT, considering the CBDT circulars on monetary limits for filing appeals.

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: ‘A’ NEW DELHI

Before: HON’BLE G.D.AGRAWAL & SHRI KULDIP SINGH

Hearing: 07.09.2018Pronounced: 19.09.2018

PER BENCH : 1. Perusal of the aforesaid appeals filed by the Revenue apparently show that the same are having low tax effect as per CBDT Circular No.3/2018 dated 11th July, 2018 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.20,00,000/- and this factual position has been fairly 2442, 2443, 2444, 2445, 3159, 1581, 35, 3161,691, 2716, 4202(CO 161),2525, 4621, 2744, 101, 2753, 508, 3338, 222, 1847, 4108, 3012, 1055, 2697/D/2018 168, 7776, 1260, 16, 7323, 536, 7191 (CO no. 17), 7141, 1846, 1843, 1660, 6682, 7584,7586 (CO no. 41), 7589,7495,1427/D/2017 5188, 4095, 4131,4352, 5355,5245 (CO No. 349), 5808, 5810-12, 5799, 6058, 6128, 5630, 5842/D/2016 conceded by the Ld. D.R. The Ld. A.R. contended that the appeal of the Revenue may be dismissed in the light of CBDT Circular (supra).

2.

We have heard the parties on the issue in controversy and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised making the aforesaid appeals not maintainable the relevant portion of the aforesaid circular is extracted as under:

1.

“Subject: Revision of monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court-measures for reducing litigation-Reg.

Reference is invited to Board’s Circular No. 21 of 2015 dated 10.12.2015 wherein monetary limits and other conditions for filing departmental appeals (in Income-tax matters) before Income Tax Appellate Tribunal, High Courts and SLPs/ appeals before Supreme Court were specified.

2. In supersession of the above Circular, it has been decided by the Board that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified below.

3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:

, 2442, 2443, 2444, 2445, 3159, 1581, 35, 3161,691, 2716, 4202(CO 161),2525, 4621, 2744, 101, 2753, 508, 3338, 222, 1847, 4108, 3012, 1055, 2697/D/2018 168, 7776, 1260, 16, 7323, 536, 7191 (CO no. 17), 7141, 1846, 1843, 1660, 6682, 7584,7586 (CO no. 41), 7589,7495,1427/D/2017 5188, 4095, 4131,4352, 5355,5245 (CO No. 349), 5808, 5810-12, 5799, 6058, 6128, 5630, 5842/D/2016

Appeals/SLPs in Monetary S. No. Income-tax Limit (in Rs) matters Before Appellate 1 20,00,000/- Tribunal Before High 2 50,00,000/- Court Before Supreme 3 1,00,00,000/- Court

It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.

……

12.

It is clarified that the monetary limit of Rs. 20 lakhs for filing appeals before the ITAT would apply equally to cross objections under section 253(4) of the Act. Cross objections below this monetary limit, already filed, should be pursued for dismissal as withdrawn/ not pressed. Filing of cross objections below the monetary limit may not be considered henceforth. Similarly, references to High Courts and SLPs/ appeals before Supreme Court below the monetary limit of Rs. 50 lakhs and Rs. 1 Crore respectively should be pursued for dismissal as withdrawn/ not pressed. References before High Court and SLPs/ appeals below these limits may not be considered henceforth.

13.

This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. Pending appeals below the specified tax limits in pare 3 above may be withdrawn/ not pressed.

14.

The above may be brought to the notice of all concerned.

15.

This issues under Section 268A of the Income-tax Act 1961……”

, 2442, 2443, 2444, 2445, 3159, 1581, 35, 3161,691, 2716, 4202(CO 161),2525, 4621, 2744, 101, 2753, 508, 3338, 222, 1847, 4108, 3012, 1055, 2697/D/2018 168, 7776, 1260, 16, 7323, 536, 7191 (CO no. 17), 7141, 1846, 1843, 1660, 6682, 7584,7586 (CO no. 41), 7589,7495,1427/D/2017 5188, 4095, 4131,4352, 5355,5245 (CO No. 349), 5808, 5810-12, 5799, 6058, 6128, 5630, 5842/D/2016

3.

In view of the CBDT Circular No.3/2018 dated 11.07.2018 having retrospective effect and what has been discussed above, we are of the considered view that the aforesaid appeal is not maintainable because of low tax effect i.e. less than Rs.20,00,000/- hence, the aforesaid appeals filed by the Revenue is hereby dismissed having been become infructuous.

However, in case, the present appeal is found to be covered by the revised guidelines issued by the CBDT vide letter F.No.279/Misc.142/2007-ITJ (Pt) dated 20th

August, 2018, the Department shall be at liberty to seek recall of this order under relevant provisions of law.

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