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Facts
The appeals concern orders of the CIT(A) for AY 2010-11 (Revenue's appeal, ITA No.6574/Del/2013) and AY 2011-12 (Assessee's appeal, ITA No.6627/Del/2013). The Revenue's appeal challenged the deletion of a disallowance of Rs.1,76,38,084 under section 37. The assessee submitted that the net tax effect for the Revenue's appeal was Rs.59,95,185/-, which is below the monetary limit of Rs.60 lakhs set by CBDT Circulars for pursuing appeals by the Department. The assessee's counsel also expressed the desire not to pursue their appeal for AY 2011-12.
Held
The Tribunal dismissed the Revenue's appeal for AY 2010-11 on the ground of low tax effect, being below the Rs.60 lakh monetary limit prescribed by CBDT Circulars, with a provision for restoration if exceptions apply. The assessee's appeal for AY 2011-12 was dismissed as withdrawn, as requested by their counsel.
Key Issues
1. Maintainability of Revenue's appeal based on low tax effect as per CBDT Circulars. 2. Whether the assessee's appeal should be dismissed as withdrawn.
Sections Cited
Section 37
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Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI BRAJESH KUMAR SINGH
ORDER
PER BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER
The appeal by the Revenue and the appeal by the assessee are directed against the orders of the Ld. CIT(A)-XXXII, both dated Page 1 of 4 & 6627/Del/2013 29.09.2013, pertaining to Assessment Years 2010-11 and 2011-12 respectively.
First, we shall take up the appeal of the Revenue in AY 2010-11.
The effective ground no.1 of the appeal is reproduced as under:-
“The Commissioner of Income Tax (Appeals) erred in law and on facts in deleting the disallowance made by the AO u/s 37 amounting to Rs,1,76,38,084/-.”
At the outset, the Ld. AR submitted a tax effect calculation chart in respect of the disputed demand and submitted that the net tax was Rs.59,95,185/-, which was less than Rs.60 lakhs and the same falls into the category of low tax effect appeals after the enhanced monetary limits of Rs.60 lacs, for which the appeal is to be filed or to be pursued by the Department before this Tribunal, as laid down by the CBDT vide Circular Nos.5/2024 dated 15.03.2024 and 09/2024 dated 17.09.2024. The tax calculation filed by the assessee is reproduced as under:-
In the case of Nau Nidh Overseas Pvt. Ltd. In Appeal No.6573/Del/2019 AY 2010-11 Addition in dispute 1,76,38,084 Gross Tax @30% 52,91,425 Surcharge @ 10% 5,29,143 Cess @ 30% 1,74,617 Net Tax 59,95,185
Page 2 of 4 & 6627/Del/2013 5. We have perused the above facts and in view of the above facts, the appeal of the Revenue is dismissed being a low tax effect appeal with a rider that in case the issue falls in the category of exceptions to the low tax effect appeals or if there is any valid reason, the Department shall be entitled for restoration of the appeal.
Now, we will take up the appeal of the assessee in pertaining to AY 2011-12. At the time of hearing, the ld. Counsel for the assessee submitted that the assessee doesn’t want to pursue its appeal. Accordingly, this appeal of the assessee is dismissed as withdrawn.
In the result, appeal of the Revenue as well as the appeal of the assessee is dismissed.