DCIT, NEW DELHI vs. M/S. PAYAL POLYMERS, NEW DELHI

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ITA 5598/DEL/2011Status: DisposedITAT Delhi16 July 2018AY 2007-084 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal held that the Departmental appeal was not maintainable due to the low tax effect, as per CBDT Circular No. 3/2018. The assessee's cross-objection was dismissed as withdrawn.

What were the facts?

The Revenue appealed against the deletion of a bad debt addition and the allowance of deduction under Section 80IB. The assessee filed a cross-objection. The tax effect of the Revenue's appeal was below Rs. 20 lakhs.

What were the issues?

Whether the Departmental appeal is maintainable when the tax effect is below the prescribed monetary limit, and whether the assessee's cross-objection can be withdrawn.

Which sections of the Income-tax Act were involved?

Section 80IB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “F” : DELHI

Before: SHRI BHAVNESH SAINI, J.M. & SHRI L.P. SAHU, A.M.

Hearing: 16.07.2018Pronounced: 16.07.2018

by assessee are directed against the Order of the Ld. CIT(A)-25, New Delhi-2, Dated 26.09.2011, for the A.Y. 2007-2008.

2.

The Revenue in the present appeal has challenged the deletion of addition of Rs.10,28,861/- under the head “Bad Debt” and challenged the Order of Ld. CIT(A) in allowing deduction under section 80IB on profit of Rs.10,28,861/-, Rs.4,66,420/- and Rs.63,07,393/-. Learned Counsel for the Assessee filed the computation of tax effect on the issue involved in the Departmental Appeal and submitted that the tax along with surcharge and cess would come to Rs.15,52,660/-. Thus, the tax effect is less than Rs.20 lakhs. The chart filed by the Learned Counsel for the Assessee is not disputed by the Revenue. Learned Counsel for the Assessee also submitted that he may be permitted to withdraw the cross objection. An endorsement to the same effect is made in the cross objection.

3 ITA.No.5598/Del./2011 & C.O.No.8/Del./2012 M/s. Payal Polymers, New Delhi.

3.

Admittedly, the tax effect in the present appeal is less than Rs.20 lakhs. Vide Circular No.3/2018 Dated 11th July, 2018 issued by CBDT, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs.20 lakhs. It is also directed that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in Tribunals.

Pending appeals below the specified tax limit may be withdrawn/not pressed. The Ld. D.R. in view of the Board’s Circular above did not press the Departmental Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circular. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and therefore, the appeal of the Department is liable to be dismissed.

4.

In the result, appeal of the Department is dismissed and Cross Objection of the Assessee is dismissed as withdrawn.

4 ITA.No.5598/Del./2011 & C.O.No.8/Del./2012 M/s. Payal Polymers, New Delhi.

Order pronounced in the open Court.

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