ACIT, NEW DELHI vs. MS. COSMOS INTERNATINAL, NEW DELHI

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ITA 2166/DEL/2014Status: DisposedITAT Delhi16 August 2016AY 2004-053 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 CBDT circular, with retrospective effect, mandates that appeals with a tax effect below Rs. 10,00,000/- should not be filed or should be withdrawn. Since the tax effect in this appeal was admittedly below the limit, it was not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT for assessment year 2004-05. The assessee contended that the appeal was not maintainable as the tax effect was below the revised monetary limit set by CBDT Circular No. 21 of 2015.

What were the issues?

Whether an appeal filed by the Revenue is maintainable before the ITAT when the tax effect is below the monetary limit prescribed by the CBDT for filing appeals.

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 BENCHES : B : NEW DELHI

Before: SHRI R.S. SYAL, AM & SHRI N.K. CHOUDHRY, JM

For Appellant: Shri Ved Jain , CA &, Shri Ashish Goel, CA, Shri Anil Kumar Sharma, Sr. DR
Hearing: 16.08.2016Pronounced: 16.08.2016

This appeal by the Revenue arises out of the order passed by the CIT(A) on 22.01.2014 in relation to the assessment year 2004-05.

2.

During the course of hearing, the ld. AR submitted that pursuant to the mandate of section 268A, the CBDT has issued Circular No. 21 of 2015 dated 10.12.2015 with retrospective effect, revising the monetary limit to Rs.10,00,000/- for not filing appeals before the Tribunal. He further submitted that as the tax effect involved in the instant appeal is less than Rs.10,00,000/-, the extant appeal is not maintainable. The ld. D.R., although supported the order of the Assessing Officer, but could not controvert the fact that tax effect involved in this appeal is less than Rs.10,00,000/-.

3.

We have heard the parties and perused the relevant material on record. Going by the prescription of the aforenoted Circular, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit for not filing the appeals. From para 10 of the above Circular it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT wherein tax effect is less than Rs.10,00,000/-. Ex conseqeunti we dismiss the instant appeal without going into merits of the case.

4.

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

Order Pronounced in the open Court on 16.08.2016.

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