ITO, SONEPAT vs. M/S. DEEP CONSTRUCTION CO., SONEPAT

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ITA 4180/DEL/2016Status: DisposedITAT Delhi31 July 2018AY 2009-102 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 of the revenue deserved to be dismissed in limine due to low tax effect, as per Circular No. 03/2018. The appeal was dismissed without going into the merits of the case.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order which restricted the addition on gross profit estimation from 12% to 4%. The tax effect involved in the appeal was Rs. 16,89,780/-.

What were the issues?

The primary issue was whether the appeal should be dismissed on the grounds of low tax effect as per the prevailing circulars, irrespective of the merits of the case.

AI-generated summary — verify with the full judgment below

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

Before: SHRI R.K.PANDA & SHRI SUDHANSHU SRIVASTAVA

Hearing: 31.07.2018Pronounced: 31.07.2018

PER SUDHANSHU SRIVASTAVA, J.M. This appeal is filed by the department against order dated 20.05.2016 passed by the Ld. CIT(A), Rohtak for assessment year 2009-10 wherein vide the impugned order. The Ld. CIT(A) has restricted the addition on gross profit estimation from 12% to 4 % by considering the past assessments of the assessee. Admittedly as per the working of the tax effect on record filed by the Department the tax involved is Rs. 16,89,780/- and, thus, in view of Circular No. 3/2018 dated 11.07.2018 and the material available on record, the Ld. Sr. DR could not point out if this case fell under any of the exceptions as provided in the aforesaid Circular. We also find that the aforesaid Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No. 03/ 2018 dated 11.07.2018. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as un-admitted, without going into the merits of the case.

3.

In the result, the appeal of the revenue is dismissed.

Order pronounced in the open court on 31.07.2018

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