ACIT, NEW DELHI vs. M/S. SBP 87 HOTELS PVT. LTD., NEW DELHI

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ITA 2883/DEL/2015Status: DisposedITAT Delhi25 July 2018AY 2009-104 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 due to low tax effect, as per CBDT Circular No. 3/2018. Consequently, the cross-objections were also dismissed as infructuous.

What were the facts?

The Revenue appealed against the deletion of additions made by the Assessing Officer. The Assessee filed cross-objections supporting the deletion. The quantum of the disputed amount was less than Rs. 20 lacs.

What were the issues?

The primary issue was the applicability of CBDT Circular No. 3/2018 regarding monetary limits for appeals to the present case, which had a low tax effect.

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

Hearing: 25.07.2018Pronounced: 25.07.2018

Challenging the order of the learned Commissioner of Income-tax (Appeals)- 24, New Delhi (for short “CIT(A)”) dated 27.2.2015, revenue preferred this appeal against the deletion of additions of Rs.17,48,470 made by the learned Assessing Officer. Assessee filed the cross objections challenging the additions made by the Ld. Assessing Officer and in support of the order under challenge by the Revenue.

2.

At the outset, it is submitted by the learned AR that the quantum involved in this case 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.

4.

Since the Appeal is dismissed, the cross objections become infructuous and is also dismissed.

5.

In the result, the appeal of the revenue and also the cross objections of the assessee are dismissed. Order pronounced in the open court on 25rd July 2018

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