ACIT, NEW DELHI vs. M/S. SAHARA ADVENTURE SPORTS LTD, MUMBAI

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ITA 2420/DEL/2016Status: DisposedITAT Delhi01 August 2018AY 2012-133 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, with retrospective effect, directed the Department not to press appeals where the tax effect is less than Rs. 20,00,000/-. Therefore, the appeal was not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee's representative submitted that a CBDT circular revised the monetary limit for filing appeals to Rs. 20,00,000/-, and the tax effect in this appeal was below that limit.

What were the issues?

Maintainability of the appeal due to the tax effect being below the revised monetary limit prescribed by a CBDT circular.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

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

Before: SHRI R.K.PANDA & SMT. BEENA A PILLAI

For Appellant: Shri Dinesh Verma, Adv. &
Hearing: 01.08.2018Pronounced: 01.08.2018

ORDER PER BEENA A PILLAI, JUDICIAL MEMBER The present appeal has been filed by Revenue against order dated 08.02.2016 passed by Ld. Commissioner of Income-Tax (Appeals)-23, New Delhi for Assessment Year 2012-13.

2.

During the course of hearing, the ld. AR submitted that pursuant to the mandate of section 268A the CBDT has issued Circular No. 03 of 2018, dated 11th July, 2018 with ACIT vs. Sahara Adventure Sports Ltd. retrospective effect, revising the monetary limit to Rs.20,00,000/- for not filing appeals before the Tribunal. He further submitted that as the tax effect involved in the instant appeal is less than Rs.20,00,000/-, to the extent appeal is not maintainable. The ld. D.R., although supported the order of the Assessing Officer, but could not controvert the fact that tax effect involved in this appeal is less than Rs.20,00,000/-.

3.

We have heard the parties and perused the relevant material on record. Going by the prescription of the aforenoted Circular, it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT, wherein tax effect is less than Rs.20,00,000/-. We are, therefore, of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/- for not filing the appeal. Accordingly, we dismiss the instant appeal without going into merits of the case.

4.

In the result revenue’s appeal is dismissed in limine. Order pronounced in the Open Court on 01st August, 2018.

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