DCIT, NEW DELHI vs. M/S. MICROMAX MEDIA PVT. LTD., DELHI

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ITA 5881/DEL/2015Status: DisposedITAT Delhi17 February 2017AY 2006-072 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 held that the appeal was not maintainable as it violated CBDT Circular No. 21/2015, which sets a pecuniary limit for filing appeals before the ITAT. The Board's instructions are binding on tax authorities.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting an addition of Rs. 14,21,000. The tax effect of the disputed amount was Rs. 4,78,308.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the tax effect and CBDT Circular No. 21/2015.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

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

Before: SH.S.V.MEHROTRA & SMT DIVA SINGH

For Respondent: Adv. & Sh. Ashish Goel, CA
Hearing: 16.02.2017Pronounced: 17.02.2017

Appellant by Sh.S.K.Jain, DR Respondent by Sh.Ved Jain, Adv. & Sh. Ashish Goel, CA Date of Hearing 16.02.2017 Date of Pronouncement 17.02.2017 ORDER

PER DIVA SINGH, JM

1.

The present appeal has been filed by the Revenue assailing the correctness of the order dated 28.08.2015 of CIT(A)-27, New Delhi pertaining to 2006-07 assessment year wherein addition of Rs. 14,21,000/- has been deleted by the CIT(A).

2.

Ld.AR inviting attention to the material available on record submitted that in the facts of the present case, the AO concluded the assessment an income of Rs.17,03,100/- wherein addition of Rs.14,21,000/- was made which was deleted by the CIT(A)-27, New Delhi vide order dated 28.08.2015. Aggrieved by which, the Revenue is in appeal. Placing the tax effect calculation on record, it was submitted that at the rate of 33.66% tax on the disputed amount the tax involved is Rs.4,78,308/-. Accordingly, in terms of the CBDT Circular No. 21/2015 dated 10th December, 2015, the departmental appeal it was submitted is not maintainable. On the request of the department, the hearing was adjourned to the next date. 3. On the next date, Ld.AR re-iterated the arguments advanced earlier. Considering the record, Ld.Sr.DR did not oppose the submissions made.

I.T.A .No.-5881/Del/2015 DCIT vs Micromax Media Pvt.Ltd.

4.

We have heard the rival submissions and considered the material available on record. We find that the appeal has been preferred by the Revenue in violation of Circular No.21/2015 dated 10th December, 2015 of CBDT. By the aforesaid circular, the pecuniary limit for filing the appeal before the ITAT has been prescribed beyond Rs.10 lakh. Para 3 of the aforesaid Circular has been made applicable vide para 10 retrospectively. Considering the settled legal precedent that the Board’s instructions or directions issued to the Income Tax Authorities u/s 268A of the Income Tax Act, 1961 are binding on the authorities, we hold that the appeal is non-maintainable.

5.

In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 17th February, 2017. Sd/- Sd/- (S.V.MEHROTRA) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER *Amit Kumar* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI

I.T.A .No.-5881/Del/2015 DCIT vs Micromax Media Pvt.Ltd.

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