ITO, NEW DELHI vs. M/S. PADCOM PVT. LTD., DELHI

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ITA 4995/DEL/2014Status: DisposedITAT Delhi07 August 2018AY 2001-024 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 as per CBDT Circular No. 3 of 2018, appeals with a tax effect below Rs. 20 lakhs should not be filed or pressed. The Revenue's counsel did not press the appeal in light of this circular.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting an addition of Rs. 30,80,125/- made under Section 68. The tax effect in the 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 instructions. The applicability of the CBDT circular to pending appeals.

Which sections of the Income-tax Act were involved?

Section 68,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 : Sh. Ravi Pratap Mall, Adv
Hearing: 07.08.2018

This appeal by the Revenue has been directed against the order of Ld. CIT(A) XVII, Delhi, dated 13.06.2014 for Assessment Year 2001-02, challenging the order of Ld. CIT(A) in deleting the addition of Rs. 30,80,125/- u/s 68 of the Income Tax Act, 1961.

2.

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 Pending appeals below the specified tax effect may be withdrawn/not pressed.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 filed against the instruction of the Board. The Departmental Appeal is dismissed as withdrawn/not pressed by the Learned Sr. D.R.

3.

In the result, appeal of the Revenue is dismissed.

Order pronounced in the open court on 07/8/2018

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