DCIT, GURGAON vs. M/S. SYSTEM PROTECTIONS, GURGAON

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ITA 1480/DEL/2015Status: DisposedITAT Delhi12 July 2018AY 2009-103 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 involved in the dispute was below the prescribed limit for preferring appeals by the Revenue. As the case did not fall under any exceptions to the CBDT circular, the appeal was dismissed.

What were the facts?

The Revenue is challenging an order of the CIT(A) which granted relief of Rs. 20,81,260/- to the assessee. The appeal was filed for the assessment year 2009-10.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed due to low tax effect as per CBDT Circular No. 21/2015, which was applicable retrospectively.

AI-generated summary — verify with the full judgment below

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

Before: SHRI G.D. AGRAWAL, HON’BLE & SHRI K. NARASIMHA CHARY

For Respondent: DR Assessee by None
Hearing: 12.07.2018Pronounced: 12.07.2018

ORDER PER K. NARASIMHA CHARY, J.M.

Challenging the order dated 07.01.2015 in appeal no. 528/11-12 passed by the Commissioner of Income Tax (Appeals)- 1, Gurgaon (“Ld. CIT(A)”) for A.Y. 2009-10.

2.

The impugned order reveals that in the appeal preferred by the assessee, Ld. CIT(A) granted relief to the assessee to a tune of Rs. 20,81,260/- which the Revenue is challenging in this appeal.

3.

It is, therefore clear that the tax liability involved in the dispute before us is below the tax effect limit prescribed by CBDT vide Circular No. 21 / 2015 dated 10.12.2015 for preferring appeals before tribunal by the revenue. On perusal of the 1 Circular No. 21 / 2015 dated 10.12.2015 and the materials available on record, Ld. DR could not point out whether this case falls under any of the exception as provided in the circular despite specific opportunity was given, does not fall under any of the exceptions contemplated in the said Circular, as this is covered. 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. This position has been confirmed by the Hon’ble Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd reported in 267 ITR 272 (SC). Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No.21 / 2015 dated 10.12.2015. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as un-admitted, without going into the merits of the case.

4.

In the result, the appeal of the revenue is dismissed.

Order pronounced in the open court on 12.07.2018

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