ITO, WARD-1(4), RUDRAPUR vs. JAGTAR SINGH, RUDRAPUR

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ITA 4321/DEL/2018Status: DisposedITAT Delhi06 September 2018AY 2013-145 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 prohibiting appeals with a tax effect below Rs. 20 lakhs is applicable retrospectively and to pending appeals. Therefore, the Revenue's appeals were dismissed based on this circular.

What were the facts?

The Revenue filed multiple appeals before the ITAT against orders of the CIT(A) for various assessment years. The appeals were filed despite a CBDT instruction prohibiting appeals where the tax effect is less than Rs. 20 lakhs.

What were the issues?

Whether the CBDT circular limiting appeals based on tax effect applies retrospectively to pending appeals, and if the Revenue's appeals fall within the specified monetary limit.

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 ‘SMC’ BENCH,

Before: SHRI N.K. BILLAIYA

Hearing: 06.09.2018Pronounced: 06.09.2018

These appeals by the Revenue are preferred against the separate orders of the Commissioner of Income Tax [Appeals], New Delhi in the cases of separate assessees, pertaining to different assessment years as aforesaid.

2.

None appeared on behalf of the Assessee. I find that on 11.07.2018 the CBDT has issued Instructions bearing No. 3 of 2018 under File No. F. No. 279/Misc.142/2007-ITJ(Pt.) prohibiting its subordinate authorities from filing of the appeal to the Tribunal against the order of the CIT(A) where tax effect by virtue of relief given by Ld. CIT(A) is less than Rs. 20 lakhs. The instructions have been made with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present cases, “tax effect” on the additions which are deleted by Ld. CIT(A) is less than Rs. 20 lakhs. Further, it has not been pointed out to us, whether any of the cases of the Revenue fall within the ambit of exceptions provided in the Circular. Thus, keeping in view the above CBDT circular and provisions of Section 268A of the Income Tax Act, I am of the view that the present appeals of the Revenue deserve to be dismissed. They are accordingly dismissed.

However, it is observed that in case on re-verification at the end of the AO it can be demonstrated that the tax effect is more, or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order relatable to such cases. Such application should be filed within the time period prescribed in the Act.

3.

In the light of the aforesaid CBDT Circular, all the appeals filed by the Revenue are dismissed.

The order is pronounced in the open court on 06.09.2018.

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