DCIT, NEW DELHI vs. M/S UNIPRODUCTS INDIA LTD., NEW DELHI

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ITA 6104/DEL/2015Status: DisposedITAT Delhi23 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 tax effect in the appeal was below the monetary limit prescribed by CBDT Circular No. 3/2018. This circular was applicable retrospectively to pending appeals and was binding on tax authorities.

What were the facts?

The Revenue appealed against the deletion of additions made by the Assessing Officer for late deposit of employee's PF/ESI contributions and disallowance under Section 14A. The assessee argued that the tax effect was below the threshold prescribed by a CBDT circular for appeals.

What were the issues?

Whether the appeal filed by the revenue is maintainable in view of the low tax effect as per CBDT Circular No. 3/2018.

Which sections of the Income-tax Act were involved?

Section 14A

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 Sanjiv Rai Mehra, CA
Hearing: 23.07.2018Pronounced: 23.07.2018

Date of Hearing 23.07.2018 Date of Pronouncement 23.07.2018 ORDER PER K. NARASIMHA CHARY, J.M. Aggrieved by the order of the learned Commissioner of Income-tax (Appeals)- 9, New Delhi (for short “CIT(A)”} dated 27.8.2015, revenue preferred this appeal against the deletion of additions of Rs.36,05,541/- on account of late deposit of employee’s contribution to PF/ESI and Rs.56,700/- made on account of Section 14A of the Income-tax Act, 1961 (“the Act”).

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.

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