ITO, NEW DELHI vs. M/S CALIBER HOUSING & INVESTMENT PVT. LTD., NEW DELHI

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ITA 1783/DEL/2016Status: DisposedITAT Delhi28 August 2018AY 2006-074 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 Revenue's appeal was not maintainable due to a low tax effect, as per CBDT Circular No. 3/2018. Consequently, the assessee's cross-objections were not pressed and were dismissed.

What were the facts?

The Revenue filed an appeal before the ITAT against an order for AY 2006-07. The assessee also filed cross-objections. The Revenue's appeal was found to have a low tax effect.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the low tax effect as per CBDT circulars. Whether the cross-objections filed by the assessee should be pressed.

Which sections of the Income-tax Act were involved?

Section 268A,Section 253(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘A/SMC’, NEW DELHI

Before: SH. N.K. BILLAIYA & SH. KULDIP SINGH

For Respondent: DR Assessee by S/sh. P.N. Shastry & M.P. Rustogi, Advocates
Hearing: 28.08.2018Pronounced: 28.08.2018

Heard together (2 matters)

C.O. No. 39/Del/2018
ITA No.1783/Del/2016

Read from the judgment's own cause title. This page is filed under one of them.

Date of hearing 28.08.2018 Date of pronouncement 28.08.2018 ORDER PER KULDIP SINGH, J.M.: The Appellant in Income Tax Officer, Ward -5(3), New Delhi (hereinafter referred to as ‘the Revenue’) has filed the instant appeal and the appellant in C.O. No. 39/Del/2018, M/s. Caliber Housing & Investment Pvt. Ltd. (hereinafter referred to as ‘the assessee’) has filed the cross objections against the impugned order dated 19.01.2016 passed by the Commissioner of Income-tax (Appeals)-2, New Delhi, qua the assessment year 2006-07.

2.

Perusal of the aforesaid appeal 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.

3.

We have heard the ld. Senior DR 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: Appeals/SLPs in Income-tax Monetary S. No. matters Limit (in 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 appeal is not maintainable because of low tax effect i.e. less than Rs.20,00,000/- hence, the aforesaid appeal filed by the Revenue is hereby dismissed having been become infructuous. In view of the fact that the appeal bearing 5. assessment year 2006-07 filed by the Revenue has been dismissed due to low tax effect, the cross objections filed by the assessee have not been pressed. Hence, the same is dismissed as such. Order pronounced in open court on 28th August, 2018 Sd/- Sd/- (N.K. BILLAIYA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 28th August, 2018. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR

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