DCIT, NEW DELHI vs. M/S. SMS PARYAVARAN LTD., NEW DELHI

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ITA 2670/DEL/2015Status: DisposedITAT Delhi02 August 2018AY 2010-113 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 appeal filed by the Revenue was not maintainable. This was in accordance with CBDT Circular No. 03/2018, which stipulated that appeals with a tax effect below Rs. 20 lakhs should not be preferred.

What were the facts?

The Revenue filed an appeal before the ITAT concerning assessment year 2010-11. The tax effect involved in the appeal was Rs. 52,54,053/-, which was below the revised monetary limit set by the CBDT for filing appeals.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable given the tax effect was below the monetary limit prescribed by the CBDT for filing appeals before the Tribunal.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A”: NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI O.P. KANT

For Respondent: Shri Ravi Kant Gupta, Sr. DR
Hearing: 02/08/2018

This is an appeal filed by the Revenue directed against the order of Ld. Commissioner of Income Tax (OSD) (APPEALS)-8, New Delhi dated 25.03.2015 pertaining to the assessment year 2010-11.

2.

At the outset of the hearing itself, the ld. DR brought to our attention that CBDT vide Circular No.03/2018 dated 11th July 2018 has decided that the revenue would not prefer an appeal before the Tribunal if the tax effect is less than Rs.20 lakhs. Therefore, he pleaded that the appeal of the revenue be decided as per the instruction of the CBDT. The disputed amount involved is Rs. 52,54,053/- which is below Rs. 20 lacs.

3.

We have heard both the sides on the issue and perused the material. We find that the CBDT vide circular dated 11th July 2018 has revised the monetary limit for filing the appeal by the department before Income Tax Appellate Tribunal to Rs. 20 lakhs.

4.

We find that the tax effect involves in the appeal of the Revenue is below Rs.20 lakhs. There is no dispute that the Board’s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present appeal in view of the aforesaid instruction since the tax effect in the instant appeal is less than the amount of Rs.20 lakhs. 5. In view of the above, Circular No.3/2018 dated 10.07.2018 will apply to all pending appeals. Therefore the precedent, it is held that the appeal is not maintainable in the instant case as the tax effect is less than Rs.20 lakhs. Accordingly, it is held that appeal filed by the revenue is not maintainable. 6. In the result, the appeal of the Revenue stands dismissed as indicated above. This decision was pronounced in the Open Court on 2nd August, 2018. sd/- sd/- (O.P. KANT) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 02/08/2018 Veena 2

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