ITO, NEW DELHI vs. SH. MAHABIR PRASAD GUPTA, DELHI

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ITA 1268/DEL/2013Status: DisposedITAT Delhi14 June 2024AY 2009-10Bench: the Tribunal to Rs.50 Lacs. Further, CBDT vide letter dated 20/08/2019 has also clarified that Circular No.17/2019 would be applicable to all pending appeals. In such circumstances, the present appeal filed by the Revenue in case of low tax effect is not maintainable. 5. Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for re-institution of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescri3 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 Income Tax Appellate Tribunal dismissed the Revenue's appeal. The Tribunal held that in light of CBDT Circular No. 17/2019 (dated 08/08/2019) revising the monetary limit for appeals to Rs. 50 Lacs and its clarification (dated 20/08/2019) making it applicable to pending appeals, the current appeal was not maintainable due to low tax effect.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order for AY 2009-10. During the hearing, the Ld. AR argued that the appeal should be dismissed as the tax effect, arising from a penalty levied by the AO and sustained by the CIT(A), was below Rs. 50 Lacs.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal given that the tax effect involved is below the monetary limit prescribed by CBDT Circulars for filing appeals.

Which sections of the Income-tax Act were involved?

AI-generated summary — verify with the full judgment below

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

For Appellant: Shri Madhur Aggarwal, Adv
For Respondent: Shri Oam Prakash, Sr. DR
Hearing: 29/05/2024Pronounced: 14/06/2024

ORDER PER S.RIFAUR RAHMAN, AM: 1. This appeal has been filed by the Revenue against the order of Learned Commissioner of Income Tax (Appeals)-XXX, New Delhi [“Ld. CIT(A)”, for short], dated 05/12/2012 for Assessment Year 2009-10.

ITO vs. Sh. Mahabir Prasad Gupta 2. At the time of hearing, the Ld. AR pointed out that the present appeal is to be dismissed as the tax effect involved in the case is below Rs.50 Lacs by bringing our attention to the penalty levied by the AO and sustained by the Ld. CIT(A).

3.

On the other hand, the Ld. DR acknowledged the same.

4.

The CBDT vide Circular No.17/2019 dated 08/08/2019 has revised the monetary limit for filing the appeals before the Tribunal to Rs.50 Lacs. Further, CBDT vide letter dated 20/08/2019 has also clarified that Circular No.17/2019 would be applicable to all pending appeals. In such circumstances, the present appeal filed by the Revenue in case of low tax effect is not maintainable.

5.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for re-institution of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescribed in para-10 of the Circular dated 11/07/2018.

6.

In conclusion, by applying the CBDT Circular dated 08/08/2019 and letter dated 20/08/2019 (supra), the captioned appeal of the Revenue is dismissed due to tax effect.

ITO vs. Sh. Mahabir Prasad Gupta 7. In the result, the appeal filed by the Revenue is dismissed.

Order pronounced on 14th June, 2024

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