What did the Tribunal hold?

The Tribunal held that the tax effect of the disputed additions/disallowances was less than Rs. 10 lacs, falling within the ambit of Circular No. 21/2015. Therefore, the Revenue's appeal was dismissed in limine.

The Revenue filed an appeal against an order of the CIT(Appeals) for AY 2010-11. The assessee also filed a cross-objection. No one appeared for the assessee during the hearing.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed due to low tax effect as per the CBDT circular, and consequently, the fate of the assessee's cross-objection.

ITO vs M/S. Buildtech Products India… | ITAT Delhi 2018

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

Before: SHRI G.D. AGRAWAL, HON’BLE & SHRI SUDHANSHU SRIVASTAVA

For Respondent: Ms. Ashma Neb, Sr. DR

Hearing: 28.06.2018Pronounced: 28.06.2018

Heard together (2 matters)

C.O. No. 277/Del/2015

ITA no. 358/Del/2015

Read from the judgment's own cause title. This page is filed under one of them.

This appeal has been preferred by the revenue against order dated 07/11/2014 passed by the Ld. CIT (Appeals)-VI, New Delhi for the assessment year 2010-11 and the cross objection has been preferred by the assessee.

None was present on behalf of the assessee/respondent when the appeal was called out for hearing. No application for adjournment was also filed on behalf of the assessee/respondent.

However, a perusal of the grounds of appeal filed by the department shows that the tax effect on the disputed additions/disallowances deleted and challenged before us is less than Rs. 10 lacs and, thus, the issue squarely falls within the ambit of Circular No. 21 / 2015 dated 10.12.2015 prescribing the tax limit for preferring appeals before the Tribunal by the revenue. With reference to Circular No. 21/2015 dated 10.12.2015 and the material available on record, the Ld. Sr. DR could not point out if this case fell under any of the exceptions as provided in the aforesaid Circular. We also find that the aforesaid Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. 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

(C.O. No. 277/Del/2015) dismiss this appeal of revenue in limine, as un-admitted, without going into the merits of the case.

Assessee’s cross objection supports the order of the Ld. CIT (A). Since, we have already dismissed the department’s appeal due to low tax effect, the assessee’s cross objection is also dismissed.

In the result, the appeal of the revenue and Cross objection of assessee are dismissed.

Order pronounced in the open court on 28.06.2018

ITO, NEW DELHI vs. M/S. BUILDTECH PRODUCTS INDIA PVT. LTD., NEW DELHI

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