CIT, PANIPAT vs. KTM INDAI HUDA, PANIPAT

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ITA 2400/DEL/2015Status: DisposedITAT Delhi01 August 2018AY 2007-082 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 CBDT circular is binding on the Revenue. Since the tax effect in this appeal was below the prescribed limit, the appeal was not maintainable.

What were the facts?

The Department filed an appeal before the ITAT. At the hearing, the Revenue pointed out a CBDT circular mandating that appeals with a tax effect below Rs. 20 lakhs should not be filed.

What were the issues?

Whether the appeal filed by the Revenue is maintainable in light of the CBDT's monetary limit for filing appeals.

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 “D”: NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI

For Appellant: Shri Ashwani Taneja, Adv, CA Shri Deepesh Garg, Adv
For Respondent: Shri Amit Jain, Sr. DR, Shri Ashwani Taneja, Adv, CA Shri Deepesh Garg, Adv
Hearing: 26/07/2018Pronounced: 01/08/2018

PER PRASHANT MAHARISHI, A. M.

1.

This appeal filed by the Department is directed against the order of ld CIT(A), , Karnal dated 09.09.2014 for the Assessment Year 2007-08. 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 matters 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.

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, appeal filed by the department is dismissed. Order pronounced in the open court on 01/08/2018. - - (AMIT SHUKLA) ACCOUNTANT MEMBER Dated: 01/08/2018 A K Keot

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