DCIT, NEW DELHI vs. M/S. PURI OIL MILLS LTD, NEW DELHI

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ITA 3885/DEL/2015Status: DisposedITAT Delhi20 June 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 tax effect in the Revenue's appeal was below the monetary limit prescribed by CBDT Circular No. 21/2015. Therefore, the appeal was not maintainable and should have been withdrawn or not pressed.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) concerning assessment year 2009-10. The appeal raised issues regarding the deletion of VAT incentive for deduction under section 80IC and the addition of a payment on which TDS was allegedly deductible.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal given the tax effect is below the prescribed monetary limit as per CBDT circular.

Which sections of the Income-tax Act were involved?

Section 80IC,Section 194C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘ F ’, NEW DELHI

Before: SHRI H.S. SIDHU & SHRI L.P. SAHU

ORDER

PER H.S. SIDHU, JM

1.

The Department has filed this Appeal which is emanate from the Order dated 02.3.2015 of Ld. CIT(A)-7, New Delhi pertaining to assessment year 2009-10. The grounds raised

in the revenue’s appeal read as under:-

1. On the facts and under the circumstances of the case, the Ld. CIT(A) has erred in law in deleting the VAT incentive of Rs. 26,93,562/- claimed by the assessee for computation of deduction u/s. 80IC, moreso in view of the fact that in AY 2007- 08, the Ld. CIT(A) has confirmed the action of the AO in its own case of the assessee.

2. On the facts and under the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 26,246/- without appreciating the fact that the assessee was required to deduct tax u/s. 194C of the I.T. Act, on the payment to the Pest Control Contractor.

3. The appellate craves to be allowed to add any fresh ground of appeal and / or delete or amend any of the grounds of appeal.

2. On perusing the aforesaid grounds, we find that the tax effect in the Revenue’s Appeal is less than Rs.10,00,000/-, therefore, the Department’s Appeal is not maintainable, in view of the Circular No. 21/2015 dated 10th December, 2015 issued vide F.No. 279/Misc. 142/2007-ITJ (Pt.) by the CBDT. For the sake of convenience, the relevant para nos. 3 & 10 of the aforesaid CBDT’s Circular are reproduced as under:- “3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: Monetary Limit S No Appeals in Income-tax matters (in Rs) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.

10.

This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”

3.

It is not in dispute that the Board’s instruction or directions issued to the income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/ not pressed the present Appeal, in view of the aforesaid instructions since the tax effect in the instant Appeal is less than the amount of Rs. 10 lacs, prescribed in the above said CBDT’s Instructions.

4.

Keeping in view the CBDT Instruction No. 21/2015 dated 10th December, 2015, we are of the view that the Revenue should have withdrawn/ not pressed the instant appeal before the Tribunal. We are also of the view that the said Instructions are applicable for the pending appeals and appeals to be filed henceforth in Tribunal. Accordingly, the Revenue’s Appeal is dismissed.

5.

In the result, Appeal filed by the Revenue Stands dismissed. Order pronounced on 20/06/2018.

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