ACIT, CIRCLE KARNAL, KARNAL vs. VEER OVERSEAS LTD., KARNAL

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ITA 611/DEL/2018Status: DisposedITAT Delhi11 September 2018AY 2000-0110 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal held that the departmental appeals were not maintainable as they were filed against the CBDT's instructions. The Senior DR did not press the appeals due to the circular. Consequently, all departmental appeals were dismissed as withdrawn or not pressed.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) was hearing numerous departmental appeals where the tax effect was below Rs. 20 lakhs. The CBDT Circular No. 3 of 2018 directed that such appeals should not be filed and pending appeals with a tax effect below the limit should be withdrawn or not pressed.

What were the issues?

Whether departmental appeals with a tax effect below the prescribed monetary limit are maintainable in light of CBDT Circular No. 3 of 2018. Whether pending appeals with a low tax effect should be withdrawn or not pressed.

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: ‘F’ NEW DELHI

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

Hearing: 07.09.2018Pronounced: 11.09.2018

PER BENCH: This Order shall dispose-off all the above Departmental Appeals in which the tax effect is below Rs.20 lakhs. The date of hearing was notified to the parties on notice board.

2.

We have heard the Learned D.R. and respective Counsels who have appeared in the above appeals.

3.

Admittedly, the tax effect in the Departmental appeals is less than Rs. 20 lakhs. Vide Circular No. 3 of 2018 dated 11.07.2018 issued by CBDT under section 268A of the I.T. Act, it has been directed that 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 the pending appeals and appeals to be filed henceforth in the Tribunal. Pending appeals below the specified tax effect may be withdrawn/not pressed. Ld. Sr. DR in view of the above Board Circular did not press the above Departmental Appeals. We may also note that the appeals of the Department above would not fall within the exceptions provided in the Board Circular. In the result, the Departmental appeals are not maintainable as have been filed against the instruction of the Board. All the Departmental

appeals are dismissed as withdrawn/not pressed by the Ld. Sr. DR.

4.

Learned Counsel for the Assessee in C.O.No.359/Del./2016 seeks permission to withdraw the same. The same is dismissed as withdrawn. C.O.No.94/Del./2018 has been filed in support of the Order of the Learned CIT(A). C.O.No.108/Del./2018 is also filed in support to the Order of the Learned CIT(A) and C.O.No.149/Del./2016 is filed in support of the Order of the Learned CIT(A). C.O.No.61/Del./2018 is also filed in support of the Order of the Learned CIT(A). In these cross-objections, the respective assessees have challenged the initiation of proceedings under section 153A or 147 of the I.T. Act, 1961. Since the addition on merit have been deleted by the learned CIT(A), the Departmental Appeals are dismissed as below tax effect. Therefore, the cross objections are left with academic discussion only. None is also present on behalf of the assessee, therefore, these cross-objections are dismissed.

5.

In the result, all the Departmental Appeals and Cross Objections are dismissed.

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