DCIT, CIRCLE-4(2), NEW DELHI vs. COMPRO TECHNOLOGIES PVT. LTD., NEW DELHI

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ITA 2579/DEL/2022Status: DisposedITAT Delhi29 March 2024AY 2018-19Bench: SHRI G.S. PANNU, HON'BLE (Vice President), SHRI ANUBHAV SHARMA (Judicial Member)3 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 noted that the tax effect in the Revenue's appeal was indeed below Rs. 50 lakhs. Citing CBDT Circular No. 17/2019 and its clarification, which makes the Rs. 50 lakh monetary limit for filing appeals applicable to pending cases, the Tribunal held that the Revenue's appeal was not maintainable.

What were the facts?

The Revenue filed an appeal against an order passed by the National Faceless Appeal Centre (FAA) which originated from an order under Section 154 of the Income Tax Act, 1961. The assessee contended that the tax effect involved was below Rs. 50 lakhs, making the appeal non-maintainable as per CBDT Circular No. 17/2019 and its subsequent clarification.

What were the issues?

Maintainability of Revenue's appeal before ITAT due to tax effect being below monetary limit set by CBDT Circular No. 17/2019.

Which sections of the Income-tax Act were involved?

Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH : H : NEW DELHI

Before: SHRI G.S. PANNU, HON’BLE & SHRI ANUBHAV SHARMA

For Appellant: Shri Parvesh Kumar Sharma, Advocate
For Respondent: Shri Sumesh Swani, Sr. DR
Hearing: 23.01.2024Pronounced: 29.02.2024

ORDER

PER ANUBHAV SHARMA, JM:

1.

This appeal is preferred by the Revenue against the order dated 05.09.2022 of the National Faceless Appeal Centre, Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal No.CIT(A), Delhi-2/10322/2019-20 arising out of the appeal before it against the order dated 17.10.2019 passed u/s 154 of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the CPC Bengaluru (hereinafter referred to as the Ld. AO).

2.

Heard and perused the record.

2.1 The ld. counsel for the assessee, at the outset, submitted that the tax effect involved in the grounds raised by the Revenue is below Rs.50 lakhs. Therefore, in view of the recent CBDT Circular No.17/2019 dated 8th August, 2019, raising the monetary limit for filing of the appeal by the Revenue before the Tribunal to Rs.50 lakhs and the subsequent clarification of the CBDT, vide Notification dated 20th August, 2019 stating that the said Circular is applicable even to pending appeals, the appeal filed by the Revenue is not maintainable.

3.

The ld. DR, on the other hand, fairly conceded that the tax effect involved in the grounds raised by the Revenue being below Rs.50 lakhs, the appeal filed by the Revenue squarely falls within the ambit of the recent CBDT Circular No.17/2019 dated 8th August, 2019 and the subsequent clarification dated 20th August, 2019.

4.

After hearing both the sides, we find the tax effect involved in the grounds raised by the Revenue is admittedly below Rs.50 lakhs. Therefore, in view of the CBDT Circular No.17/2019 dated 8th August, 2019 raising the monetary limits for filing of the appeals by the Revenue before the Tribunal to Rs.50 lakhs and the subsequent clarification dated 20th August, 2019 to the effect that the said Circular is applicable even to pending appeals, the appeal filed by the Revenue is not maintainable. Accordingly, the same is dismissed.

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