ACIT, NEW DELHI vs. M/S. SUNSHINE CAPITAL LTD., NEW DELHI

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ITA 2003/DEL/2014Status: DisposedITAT Delhi07 April 2017AY 2008-092 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 appeal was filed in violation of CBDT Circular No. 21/2015, which mandates a minimum tax effect for filing appeals. The Revenue's counsel did not press the appeal in light of this circular.

What were the facts?

The Revenue appealed against the CIT(A)'s order which deleted a portion of the disallowance made under Section 14A. The tax effect in the departmental appeal was less than the mandatory limit prescribed by CBDT circulars.

What were the issues?

Whether the departmental appeal is maintainable given the tax effect is below the prescribed limit as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI

Before: SH. BHAVNESH SAINI & SH.L.P.SAHU

Hearing: 05.04.2017

PER BHAVNESH SAINI, JUDICIAL MEMBER This appeal by Revenue has been directed against the order of CIT(A)-XI, New Delhi dated 29.11.2013 for AY 2008-09, challenging the order of CIT(A) in deleting the disallowance of Rs.17,46,719/- without any basis out of total disallowance of Rs.22,74,040/- u/s 14A of the I.T.Act, 1961.

2.

We have heard Ld. representatives of both the parties.

3.

The CBDT vide Circular No.21/2015 dated 10.12.2015 has decided that the appeal shall not be filed before the Appellate Tribunal in cases where the tax effect does not exceed mandatory limit of Rs.10 Lacs. The Circular would apply to all pending appeals as well. Admittedly in the department appeal, the tax effect is less than Rs.10 Lacs. Therefore, the departmental appeal is not maintainable as was filed in violation of above both circulars.

4.

Ld. DR in view of the above, did not press the department appeal. We may also note that the department would not fall in exception provided in the above Board Circular.

5.

In view of the above, the departmental appeal is dismissed. The order is pronounced in the open court on 07th of April, 2017.

1.

Sd/- Sd/- (L.P.SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER I.T.A .No.-2003/Del/2014 ACIT vs Sunshine Captial Ltd.

Page 2 of 2 Date:- 07th April, 2017 *Amit Kumar*

I.T.A .No.-2003/Del/2014 ACIT vs Sunshine Captial Ltd.

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