ITO, NEW DELHI vs. M/S. GROVERSONS APPAREL (P) LTD., NEW DELHI

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ITA 4139/DEL/2016Status: DisposedITAT Delhi07 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 held that the quantum of the dispute was below the monetary limit prescribed by CBDT Circular No. 3/2018 for revenue appeals. Therefore, the appeal was dismissed in limine.

What were the facts?

The revenue filed an appeal before the ITAT challenging an order of the CIT(A) for AY 2007-08. The assessee is Groversons Apparel (P) Ltd.

What were the issues?

The primary issue was the applicability of CBDT Circular No. 3/2018 regarding monetary limits for revenue appeals to the present case.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘C’ NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI P. MAHARISHI

For Respondent: Smt. Ashima Neb, Sr. DR
Hearing: 07.08.2018Pronounced: 07.08.2018

Date of Hearing 07.08.2018 Date of Pronouncement 07.08.2018 ORDER PER SHRI PRASHANT MAHARISHI, A.M.

Challenging the order dated 20.05.2016 in appeal no. 140/15- 16/CIT(A)-4 passed by the Commissioner of Income Tax (Appeals)- 4, New Delhi (“Ld. CIT(A)”) for A.Y. 2007-08.

2.

At the outset, it is brought to our notice that the quantum involved in this case being less than Rs.20 lacs, squarely falls within the ambit of Circular No. 3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes prescribing the tax effect for preferring appeals before Tribunal by the revenue.

3.

After perusing the materials available on record, we find that the amount disputed before us is below the tax effect limit prescribed by CBDT vide Circular No.3/2018 dated 11.07.2018 for preferring appeals before tribunal by the revenue. On perusal of the Circular No.3/2018 dated 11.07.2018 and the materials available on record, Ld. DR could not point out as to how and why such a Circular is not applicable to the facts of the case. We also find that the Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. We find that the Circular is binding on the tax authorities. Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No.3/2018 dated 11.07.2018. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as unadmitted, without going into the merits of the case.

4.

In the result, Appeal is dismissed.

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