ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1), NEW DELHI, C.R. BUILDING vs. ALLIED NIPPON PVT LTD, NEW DELHI

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ITA 3108/DEL/2023Status: DisposedITAT Delhi21 March 2024AY 2017-18Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), DR. RR KUMAR (Accountant Member)2 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 observed that the tax effect in the appeal was indeed below Rs. 50 lakhs. Citing CBDT Circular No. 21/2015 dated December 10, 2015, which prohibits the Revenue from filing appeals before the ITAT for tax effects less than Rs. 50 lakhs, the Tribunal dismissed the appeal as not maintainable.

What were the facts?

The Revenue filed an appeal against an order of the Ld. PCIT for AY 2017-18. The Ld. Counsel for the Assessee contended that the tax effect of the appeal was less than Rs. 50 lakhs, specifically Rs. 49,17,435/-, making the appeal non-maintainable.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT when the tax effect involved is less than Rs. 50 lakhs, as per CBDT guidelines.

Which sections of the Income-tax Act were involved?

AI-generated summary — verify with the full judgment below

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

Before: SHRI CHALLA NAGENDRA PRASAD & DR. RR KUMAR

Hearing: 21.03.2024

Revenue by Shri Kanv Bali, Sr. DR Assessee by CA Praveen Kumar & Shri Gaurav Buddi, CA सुनवाईक�तारीख/ Date of hearing: 21.03.2024 21.03.2024 उ�ोषणाक�तारीख/Pronouncement on आदेश /O R D E R PER C.N. PRASAD, J.M.

This appeal by Revenue has been directed against the order of Ld. PCIT, New Delhi dated 12.10.2023 for AY 2017-18.

2.

The Ld. Counsel for Assessee submits that the Revenue effect in this appeal is less than Rs.50 lakhs. Referring to the grounds of appeal of the Revenue it is submitted that the disputed addition is only Rs.49,17,435/- on which the tax effect is less than Rs.50 lakhs.

I.T.A.No.3108/Del/2023

3.

We have heard the arguments of Ld. DR and have perused the relevant material placed before us. It is observed that the tax effect in the present appeal of the Revenue is below Rs.50 lakhs. As per Circular No.21/2015 dated 10th December, 2015, the CBDT has clearly laid down that the Revenue should not prefer appeals before the ITAT if the tax effect involved in the appeal, excluding interest, is less than Rs.50 lakhs. In view thereof, the appeal filed by the Revenue is not maintainable and is dismissed.

4.

In the result, the appeal of Revenue is dismissed.

Order pronounced in the open court on 21.03.2024

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