ACIT, NEW DELHI vs. M/S DEEPALI DESIGN & EXHIBITS, NEW DELHI

PDF · subscribers
ITA 6202/DEL/2016Status: DisposedITAT Delhi10 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 CBDT circular dated July 11, 2018, which revised the monetary limit for appeals to Rs. 20 lakhs, is binding on the Revenue. Therefore, the Revenue should not have pressed these appeals.

What were the facts?

The Revenue filed appeals against penalty orders under Section 271(1)(c) for assessment years 2009-10 and 2010-11. The tax effect in both appeals was below the monetary limit of Rs. 20 lakhs.

What were the issues?

Whether the Revenue's appeals should be dismissed due to the tax effect being below the revised monetary limit prescribed by the CBDT for filing appeals.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “B”: NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI O.P. KANT

For Appellant: Shri Praveen Agarwal, CA
For Respondent: Ms. Ashima Neb, Sr. DR, Shri Praveen Agarwal, CA
Hearing: 10/09/2018

The appeals filed by the Revenue are directed against the order of Ld. Commissioner of Income Tax (APPEALS), 27, New Delhi dated 08.09.2016 in relation to the penalty proceedings u/s 271(1)(c) pertaining to the assessment years 2009-10 and 2010-11. The disputed amount of penalty levied is :- Assessment year Amount 2009-10 Rs. 12,82,390/- 2010-11 Rs. 11,52,980/-

2.

It has been admitted by both the parties the tax effect is below the monetary limit of Rs. 20 lakhs. At the outset of the hearing itself, the Ld. Sr. DR brought to our attention that CBDT vide Circular No.03/2018 dated 11th July 2018 has decided that the revenue would not prefer an appeal before the Tribunal if the tax effect is less than Rs.20 lakhs. Therefore, he pleaded that the appeal of the revenue be decided as per the instruction of the CBDT. Ld AR also reiterated same facts.

3.

We have heard both the sides on the issue and perused the material. We find that the CBDT vide circular dated 11th July 2018 has revised the monetary limit for filing the appeal by the department before Income Tax Appellate Tribunal to Rs. 20 lakhs. 4. We find that the tax effect involves in the appeals of the Revenue is below Rs.20 lakhs. There is no dispute that the Board’s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present appeal in view of the aforesaid instruction since the tax effect in the instant appeal is less than the amount of Rs.20 lakhs. 5. In the result, the appeals of the Revenue stand dismissed as indicated above. This decision was pronounced in the Open Court on 10th September, 2018. sd/- sd/- (O.P. KANT) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 10/09/2018 Veena

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →