ITO, NEW DELHI vs. M/S. SHAILA ENGG. WORKS, NEW DELHI

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ITA 1395/DEL/2014Status: DisposedITAT Delhi08 August 2018AY 2007-083 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 noted that the CBDT Circular No. 3 of 2018 directs the Department not to file appeals where the tax effect is below Rs. 20 lakhs, and this applies retrospectively. The Senior DR did not press the appeal in view of this circular.

What were the facts?

The Revenue appealed against an order of the CIT(A) which granted relief to the assessee on additions made for sundry creditors and expenses. The tax effect in the Revenue's appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the Departmental appeal is maintainable given the low tax effect and the CBDT circular on monetary limits for appeals.

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: ‘C+SMC’, NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI PRASHANT MAHARISHI

For Respondent: DR Assessee by :
Hearing: 08.08.2018Pronounced: 08.08.2018

ITA.No.1395/Del/2014 Assessment Year 2007-08 M/s. Shaila Engg. Works, Income Tax Officer, 6/467, Plot No.3, Gali Ward-34(1), Room No.D-3, Jno.13, Opp. Bhatta Vikas Bhawan, vs. Market, Sewa Dham Road, New Delhi – 110 002. Mandoli, Delhi – 110 095. PAN AACFS0273K APPELLANT RESPONDENT Revenue by : Sh. Vijay Kumar Jiwani, Sr. DR Assessee by : -None- Date of Hearing : 08.08.2018 Date of Pronouncement : 08.08.2018 ORDER PER BHAVNESH SAINI, JM

This appeal by the Revenue has been directed against the order of Ld. CIT(A)-XXVII, New Delhi, dated 31.12.2013, for Assessment Year 2007-08.

2 ITA.No.1395/Del./2014 M/s. Shaila Engg. Works, Delhi. 2. In this case, A.O. made addition of Rs.38,88,648/- on account of sundry creditors and also made addition of Rs.1,44,538/- on account of expenses. The Ld. CIT(A) on both the grounds allowed the relief to the assessee in a sum of Rs.38,16,016/-.

3.

Admittedly, the tax effect in the Departmental Appeal 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. Learned Sr. D.R. in view of the above Board Circular did not press the Departmental Appeal. We may also note that the Appeal of the Department above would not fall within the exceptions provided in the Board Circular. In the result, the Departmental Appeal is not maintainable as have been 3 ITA.No.1395/Del./2014 M/s. Shaila Engg. Works, Delhi. filed against the instruction of the Board. The Departmental Appeal is dismissed as withdrawn/not pressed by the Learned Sr. D.R.

4.

In the result, appeal of the Revenue is dismissed.

Order pronounced in the open court on 08.08.2018

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