DDIT (E), NEW DELHI vs. M/S. CB RICHARD ELLIS (PTE) LTD., NEW DELHI

The aforesaid appeal has been filed by the Revenue against impugned order dated 02.9.2013, passed by the ld. CIT (Appeals)-29, New Delhi for the quantum of assessment passed u/s 143(3)/144C(3) for the A.Y. 2009-10.

The assessee in its letter has enclosed a copy of notice of demand u/s 156 dated 30.3.2012, whereby the Assessing Officer has rectified and determined the tax liability at Rs. 9,02,835/- on the entire disputed amount. In view of the aforesaid determination of tax liability by the AO, it is noticed that, now the tax effect is below the monetary limit prescribed by the Instruction issued of the CBDT for filing the appeal before the Tribunal by the Department in wake of circular no. 21/2015 dated 10.12.2015, which lays down the monetary limit of tax effect of Rs. 10 lakhs on the disputed issue. Admittedly this circular/instruction issued by CBDT issued u/s 268A is applicable retrospectively to all the pending appeals accordingly the appeal of the revenue is dismissed as illumine on account of no tax effect.

The Ld. DR submitted that apparently AO’s determination of tax liability in revised demand notice in pursuance of rectification application u/s 154 appears to correct, however he submitted liberty should be given to the department to file rectification application if tax effect exceeds Rs. 10 Lakhs.

On perusal of the revised demand notice issued by the AO, we find that the tax effect on the disputed is less than Rs. 10,00,000/-, therefore, in view of aforesaid CBDT Instruction the appeal of the revenue is not maintainable and hence dismissed in-limine. However Revenue would be liberty to approach this Tribunal, if the tax liability exceeds more than Rs. 10,00,000/-.

In the result, the appeal of the Revenue is dismissed.