ACIT, NOIDA vs. M/S. ATS INFRASTRUCTURE LTD., NOIDA

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ITA 5983/DEL/2014Status: DisposedITAT Delhi29 August 2018AY 2002-034 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 were not maintainable due to low tax effect, which was less than the monetary limit prescribed by CBDT Circular No. 3/2018. The circular was also found to have retrospective effect.

What were the facts?

The Revenue filed appeals before the ITAT for assessment years 2002-03 and 2003-04. The assessee contended that the appeals should be dismissed due to low tax effect as per CBDT Circular No. 3/2018.

What were the issues?

Whether appeals filed by the Revenue are maintainable when the tax effect is below the monetary limit specified in the CBDT Circular, and if the circular applies retrospectively.

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: SHRI N.K. BILLAIYA & SHRI KULDIP SINGH

For Appellant: Shri Ajay Vohra, Senior advocate, Shri Rohit Jain, Advocate, Ms. Deepashi Rao, CA
For Respondent: Smt. Aparna Karan, CIT DR
Hearing: 29.08.2018

PER KULDIP SINGH, JUDICIAL MEMBER :

1.

The Appellant, Assistant Commissioner of Income-tax, Central Circle, Meerut (hereinafter referred to as ‘the revenue’) by filing the present appeal sought to set aside the impugned orders dated 26.08.2014 passed by the Commissioner of Income-tax (Appeals), Meerut qua the assessment years 2002-03 & 2003-04.

2. Perusal of the aforesaid appeals filed by the Revenue apparently show that the same is 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 conceded by the Ld. Senior DR. The Ld. A.R. contended that the appeal of the Revenue may be dismissed in the light of CBDT Circular (supra).

3.

We have heard 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 and the relevant portion of the aforesaid circular is extracted as under:

“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:

Monetary S. No. Appeals/SLPs in Income-tax Limit (in matters Rs) 1 Before Appellate Tribunal 20,00,000/- 2 Before High Court 50,00,000/- 3 Before Supreme Court 1,00,00,000/- 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……” 4. The Ld. Sr. D.R. has not preferred to controvert the fact that the appeal in question is covered under CBDT Circular No.3/2018 dated 11th July, 2018 (supra). So, 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 appeals are not maintainable because of low tax effect i.e.

less than Rs.20,00,000/- hence, the same are hereby dismissed having been become infructuous. Order pronounced in open court on this 29th day of August, 2018 after the conclusion of the hearing.

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