DCIT, NEW DELHI vs. M/S GANPATI FINCAP PVT LTD., NEW DELHI

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ITA 5843/DEL/2015Status: DisposedITAT Delhi21 October 2016AY 2011-122 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 was filed in violation of the CBDT circular prescribing a pecuniary limit for appeals. The circular was made applicable retrospectively.

What were the facts?

The Revenue filed an appeal before the ITAT. The tax effect in the appeal was below Rs. 10 lakh. The appeal was filed in violation of CBDT Circular No. 21/2015.

What were the issues?

Whether an appeal filed by the Revenue is maintainable when the tax effect is below the pecuniary limit prescribed by the CBDT circular, especially when the circular is made applicable retrospectively.

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: ‘A’ NEW DELHI

Before: SMT DIVA SINGH & SH.PRASHANT MAHARISHI

For Respondent: Adv. &
Hearing: 07.09.2016Pronounced: 21.10.2016

Date of Hearing 07.09.2016 Date of Pronouncement 21.10.2016 ORDER

PER DIVA SINGH, JM

1.

The present appeal has been filed by the Revenue assailing the correctness of the order dated 26.08.2015 of CIT(A)-27, New Delhi pertaining to 2011-12 assessment year.

2.

It was a common stand of the parties before the Bench that the tax effect in the present appeal is well below Rs.10 lakh. We have 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.

I.T.A .No.-5843/Del/2015

3.

In view of the above discussion, the present appeal preferred by the Revenue in violation of CBDT Circular No.21/2015 (cited supra) is not maintainable and hence, the same is dismissed as such making it clear that since the present appeal has not been disposed of on merits, but due to the above reason, this order will not have any judicial precedence. Accordingly, the appeal of the Revenue is dismissed as non-maintainable.

4.

In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 21st October, 2016.

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