DCIT, CIRCLE-4(2), NEW DELHI vs. COMPRO TECHNOLOGIES PVT. LTD., NEW DELHI
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.
Held
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.
Key Issues
Maintainability of Revenue's appeal before ITAT due to tax effect being below monetary limit set by CBDT Circular No. 17/2019.
Sections Cited
Section 154 of the Income Tax Act, 1961
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
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : H : NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE VICE PRESIDENT AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.2579/Del/2022 Assessment Year: 2018-19 DCIT, Vs Compro Technologies Pvt. Circle-4(2), Ltd., New Delhi. 2LSC Udya Park, New Delhi – 110 049. PAN: AABCC4458N (Appellant) (Respondent) Assessee by : Shri Parvesh Kumar Sharma, Advocate Revenue by : Shri Sumesh Swani, Sr. DR Date of Hearing : 23.01.2024 Date of Pronouncement : 29.02.2024 ORDER PER ANUBHAV SHARMA, JM: 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).
Heard and perused the record.
ITA No.2579/Del/2022 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.
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.
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.
In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open court on 29.02.2024. Sd/- Sd/- (G.S. PANNU) (ANUBHAV SHARMA) VICE PRESIDENT JUDICIAL MEMFBER Dated, 29th February, 2024.
ITA No.2579/Del/2022 dk Copy forwarded to 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi
