What did the Tribunal hold?

The Tribunal held that in view of CBDT Circular No. 21/2015, appeals with a tax effect below Rs. 10 lakhs are not maintainable. Therefore, the appeal filed by the Revenue was dismissed without going into the merits of the case.

The Revenue filed an appeal against an assessment order for the assessment year 2010-11. The tax effect on the disputed issue raised by the Revenue was less than Rs. 10 lakhs.

What were the issues?

Maintainability of the Revenue's appeal due to low tax effect, as per CBDT Circular No. 21/2015.

ITO vs Sh. Yogesh Kataria, Gurgaon | ITAT Delhi 2017

Income Tax Appellate Tribunal, DELHI BENCH “G”, NEW DELHI

Before: SHRI. AMIT SHUKLA & SHRI PRASHANT MAHARISHI

For Appellant: Shri Kaushlendra Tiwari, D.R

The aforesaid appeal has been filed by the Revenue against impugned order dated 24/2/2015 passed by the ld. CIT(Appeals)-I, Gurgaon for quantum of assessment passed under section 144 of the Income Tax Act, 1961 for assessment year 2010-11.

At the outset, Ld. Sr. DR fairly pointed out that the tax effect on the disputed issue as has been raised by the Revenue in the grounds of appeal is much less than Rs.10 lakhs. Whence the tax effect on the addition admittedly is much less than Rs.10 lakhs, then, in view of C.B.D.T. Circular No.21/2015 dated 10/12/2015, the appeal filed by the Revenue is not maintainable. It has been further clarified in the said Circular that the monetary limit for filing of appeal will apply on all the pending appeals also. Accordingly the appeal of the Revenue is dismissed in-limine without going to the merits of the case.

In the result, appeal of the Revenue is dismissed. Order pronounced in the open Court on 26th October, 2017.

ITO, GURGAON vs. SH. YOGESH KATARIA, GURGAON

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