What did the Tribunal hold?

The Tribunal held that the CBDT's circular is binding on the tax authorities. Since the tax effect in these appeals was below the prescribed limit, the appeals were not maintainable.

The Revenue filed appeals before the ITAT. The CBDT had issued a circular stating that appeals would not be preferred if the tax effect is less than Rs. 20 lakhs.

What were the issues?

Whether the Revenue's appeals are maintainable before the Tribunal when the tax effect is below the monetary limit prescribed by the CBDT circular.

DCIT vs M/S. K.S. Hotels (P) Ltd., New… | ITAT Delhi 2018

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

Before: SMT DIVA SINGH & SHRI PRASHANT MAHARISHI

For Appellant: Shri Deepesh, Adv 09, Shri Ashwani, Adv 103/Del/2011, Shri KP Garg, CA CR Building, Shri GS Kohli, CA Room No. 312, Shri Gautam, Adv 4, New Delhi, Shri Piyush Kr, Adv 3302/Del/2014, Shri Divyanshu, Adv New Delhi, Shri Akash, Adv PAN: AFOPB8939G, Shri K, Adv Income Tax, Shri V. Raja, Adv Lodge, Shri V, Adv PAN: AAACT0510D, Shri K, Adv Room No, Shri V Raja, Adv Floor, Parkyash, Shri S.M, Shri R.M, Adv New Delhi, Shri Salil, Adv New Delhi, Shri Shailesh

For Respondent: Shri S.R. Senapati, Sr. DR

Hearing: 31/07/2018Pronounced: 31/07/2018

ORDER PER BENCH:

1. 1. These appeals by the Revenue arise out of the orders passed by the CIT(A) in relation to the captioned assessment years.

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. Ld AR also reiterated same facts.

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, Hon’ble High Courts and Hon’ble Supreme Court. The relevant para of the aforesaid circular is reproduced as under :- “3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder :- Sl.No. Appeals in Income-tax Monetary Limit(in matters 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.”

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. 3

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.

In the result, appeals filed by the department is dismissed. Order Pronounced in the Court on 31/07/2018. -Sd/- -Sd/- (DIVA SINGH) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:31/07/2018. Ak Keot Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT (A) 5. DR, ITAT

AR, ITAT, NEW DELHI.

DCIT, NEW DELHI vs. M/S. K.S. HOTELS (P) LTD., NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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