DCIT,CIRCLE-4(2), NEW DELHI vs. C AND C PROJECTS LTD., DELHI
Facts
The Revenue filed an appeal against an order of the National Faceless Appeal Centre (NFAC) for the assessment year 2017-18. However, the assessee contended that the tax effect involved in the appeal was below Rs. 50 lakhs, making the appeal non-maintainable as per CBDT Circular No. 17/2019. The Senior DR did not dispute this factual position.
Held
The Tribunal dismissed the Revenue's appeal as not maintainable, confirming that the tax effect was below the monetary limit of Rs. 50 lakhs set by CBDT Circular No. 17/2019 for departmental appeals to the ITAT. It granted the Revenue liberty to seek recall of the order if the tax effect is later found to exceed the limit or if any exceptions apply.
Key Issues
Whether the Revenue's appeal is maintainable before the ITAT when the tax effect involved is below the monetary limit specified by CBDT Circular No. 17/2019.
Sections Cited
144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “B”: NEW DELHI
Before: SHRI SAKTIJIT DEY & SHRI M. BALAGANESH
1 ITA no. 848/Del/2023
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI
BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER
ITA No. 848/DEL/2023 Assessment Year: 2017-18
DCIT, Circle-4(2), Vs C and C Projects Ltd., New Delhi. G-11, Hemkunt Chamber, Nehru Place, New Delhi-110019.
PAN- AADCC0878L APPELLANT RESPONDENT Assessee represented by Shri Amar Jeet Singh, CA Department represented by Shri Vivek Kumar Upadhyay, Sr. DR Date of hearing 05.02.2024 Date of pronouncement 29.04.2024
O R D E R PER M. BALAGANESH, AM:
This appeal, by the Revenue, is directed against the order of National Faceless Appeal Centre (NFAC), Delhi, dated 27.01.2023, arising out of order dated 07.02.2019, passed by the DCIT, Circle-5(2), Delhi u/s 144 of the Income-tax Act, 1961, pertaining to the assessment year 2017-18.
At the outset, learned counsel for the assessee submitted that the tax effect involved in the present appeal of the Revenue is below Rs. 50 lakhs. Referring to CBDT Circular No. 17/2019 dated 8th August, 2019, revising the monetary limit for filing of the departmental appeals to the ITAT at Rs. 50 lakhs, learned counsel submitted that the appeal of the Revenue is not maintainable.
The learned Sr. DR could not dispute the factual position that the tax effect involved in the instant appeal is less than Rs. 50 lakhs.
2 ITA no. 848/Del/2023
In view of the above factual position, the tax effect involved in the appeal being less than Rs. 50 lakhs, we deem it proper to dismiss the appeal of the Revenue in the light of the CBDT Circular No. 17/2019 dated 8th August, 2019, as not maintainable. However, if on a later date, the Revenue finds that the tax effect in dispute in the aforesaid appeal is more than the limit prescribed or it is protected by any of the exceptions provided in the CBDT Circular, it shall be at liberty to approach the Tribunal for recall of the order and reinstitution of the appeal for adjudication on merits. The Tribunal shall consider such application, as per the extant law. 5. In the result, Revenue’s appeal stands dismissed, as not maintainable.
Order pronounced in open court on 29.04.2024.
Sd/- Sd/- (SAKTIJIT DEY) (M. BALAGANESH) VICE PRESIDENT ACCOUNTANT MEMBER
Dated: 29.04.2024. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI
