DCIT, NEW DELHI vs. M/S. DCM ENGINEERING LTD., NEW DELHI

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ITA 6478/DEL/2015Status: DisposedITAT Delhi11 December 2017AY 2012-134 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 CBDT circular, which revised the monetary limit for filing appeals to Rs. 10,00,000/-, has retrospective effect and applies to pending appeals. Therefore, the appeal filed by the Revenue was not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee contended that the appeal was not maintainable as the tax effect was below the revised monetary limit set by a CBDT circular. The Revenue could not controvert this fact.

What were the issues?

Whether a CBDT circular revising monetary limits for appeals has retrospective effect and applies to pending appeals before the ITAT.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DELHI BENCHES : D : NEW DELHI

Before: SHRI R.S. SYAL & SHRI C.M. GARG

For Appellant: Shri V.P. Gupta, Advocate, Shri Amit Jain, Sr. DR
Hearing: 11.12.2017Pronounced: 11.12.2017

This appeal by the Revenue arises out of the order passed by the CIT(A) on 14.09.2015 in relation to the assessment year 2012-13.

2.

During the course of hearing, the ld. AR submitted that pursuant to the mandate of section 268A, the CBDT has issued Circular No. 21 of 2015 dated 10.12.2015 with retrospective effect, revising the monetary limit to Rs.10,00,000/- for not filing appeals before the Tribunal. He further submitted that as the tax effect involved in the instant appeal is less than Rs.10,00,000/-, the extant appeal is not maintainable. The ld. D.R., although supported the order of the Assessing Officer, but could not controvert the fact that tax effect involved in this appeal is less than Rs.10,00,000/-.

3.

We have heard the parties and perused the relevant material on record. Going by the prescription of the aforenoted Circular, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit for not filing the appeals. From para 10 of the above Circular it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT wherein tax effect is less than Rs.10,00,000/-.

4.

Recently, the Hon'ble Supreme Court in DIT vs. S.R.M.B.

Dairy Farming Pvt. Ltd., vide its decision rendered on 23.11.2017, has held that the Circulars of the CBDT requiring dismissal of appeals having no tax effect, being beneficial in nature to the assessee, have retrospective effect and have to be followed. This judgment has been delivered after considering the judgment in the case of Gemini Distillers (2017) 398 ITR 343 (SC). Ex conseqeunti we dismiss the instant appeal without going into the merits of the case.

5.

In the result, the appeal of the Revenue stands dismissed.

Order Pronounced in the open Court on 11.12.2017.

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