DCIT, NEW DELHI vs. M/S. MEGA INFRAPROJECTS PVT. LTD., NEW DELHI

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ITA 1804/DEL/2015Status: DisposedITAT Delhi30 July 2018AY 2011-123 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 falls within the ambit of CBDT Circular No. 3/2018, which prescribes a monetary limit for preferring appeals. Since the tax effect was below the prescribed limit, the appeal was dismissed.

What were the facts?

The Revenue preferred an appeal before the ITAT challenging an order of the CIT(A). The tax effect involved in the appeal was Rs. 18,37,275/-, which was less than Rs. 20 lacs.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the Tribunal given the low tax effect, in light of CBDT Circular No. 3/2018.

Which sections of the Income-tax Act were involved?

N/A

AI-generated summary — verify with the full judgment below

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

Before: SHRI G.D. AGRAWAL & SHRI K.NARASIMHA CHARY

For Appellant: Shri Ajay Bhagwani, CA
For Respondent: DR Assessee by Shri Ajay Bhagwani, CA
Hearing: 30.07.2018Pronounced: 30.07.2018

ORDER PER SHRI K.NARASIMHA CHARY, JM Challenging the order of the learned Commssioner of Income-tax (Appeals)- XXX, New Delhi (for short “Ld. CIT(A)) dated 29.12.2014, Revenue preferred this appeal. 2. At the outset, it is brought to our notice that the subject matter involved is Rs.5,9,45,874/- and tax thereon is Rs.18,37,275/-, 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.

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