ITO, NEW DELHI vs. M/S. EXQUISITE DECORS PVT. LTD., NEW DELHI

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ITA 4490/DEL/2010Status: PendingITAT Delhi04 August 2016AY 2005-063 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 dismissed the department's appeal without going into the merits of the case. This was based on the CBDT circular and Section 268A of the Income Tax Act, as the tax effect was below the prescribed limit.

What were the facts?

The department appealed against an order of the CIT(A) which deleted additions of Rs. 28,56,606/-. The assessee contended that the tax effect was below Rs. 10 lacs, making the appeal not maintainable as per CBDT circular.

What were the issues?

Whether the departmental appeal is maintainable when the tax effect is below the threshold specified by the CBDT circular. Applicability of CBDT Circular No. 21/2015 to pending 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 BENCH ‘B’, NEW DELHI

Before: SHRI G.D. AGRAWAL & SHRI SUDHANSHU SRIVASTAVA

For Respondent: Ms. Lalitha Krishanamurthy, Adv
Hearing: 03.08.2016

ORDER PER SUDHANSHU SRIVASTAVA, J.M.

This is an appeal by the department against the order dated 20.08.2010 of CIT (A)-XIII, New Delhi for AY 2005-06, wherein the Ld. CIT (A) has deleted additions amounting to Rs. 28,56,606/-.

2.

The ld. Counsel for the assessee stated that the tax effect in the departmental appeal is less than Rs. 10 lacs. She filed a calculation as per which the disputed tax comes to Rs. 9,99,812/-. It was submitted that in Exquisite Decors P. Ltd. Page 1 of 11 view of the CBDT’s latest circular no. 21/2015 dated 10/12/2015, the appeal was not maintainable.

3.

The ld. D.R., although supported the order of the Assessing Officer, but could not controvert the fact that tax effect in this appeal is less than Rs.10,00,000/-.

4.

From Clause 10 of the above circular it is clear that these instructions are applicable to the pending appeals also and there is clear cut instruction to the department to withdraw or not to press the appeals filed before the ITAT wherein tax effect is less than Rs.10,00,000/-. These instructions are operative retrospectively to the pending appeals also.

5.

Keeping in view the CBDT Circular No.21 of 2015 dated 10.12.2015 and also the provisions of Section 268A of Income Tax Act, 1961, we are of the view that the Revenue’s appeal is liable to be dismissed.

6.

In view of the above, without going into merits of the case, we dismiss the appeal filed by the department. We do, however, add that if on verification of the facts Exquisite Decors P. Ltd. Page 2 of 3 and the calculation of the tax effect, the department feels that the tax effect has been wrongly calculated, department shall be free to move a Miscellaneous Application for the recall of this order.

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