What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeals due to the low tax effect, as per CBDT circulars. The assessee's cross-objections were also dismissed as they were not pressed.

The Revenue filed appeals before the ITAT, and the assessee filed cross-objections. The tax effect in the Revenue's appeals was below ₹10 lakhs, and the assessee did not press their cross-objections.

What were the issues?

Whether appeals with a tax effect below the prescribed monetary limit should be dismissed, and whether cross-objections not pressed should be dismissed.

ACIT vs M/S. Horizon Solutions… | ITAT Delhi 2016

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: SHRI G.D. AGRAWALG.D. AGRAWAL & AND BEFORE SHRI G.D. AGRAWALG.D. AGRAWAL & AND SMT. BEENA A. PILLAI SMT. BEENA A. PILLAISMT. BEENA A. PILLAI SMT. BEENA A. PILLAI

For Appellant: Shri Kapil Goel, Advocate

For Respondent: Shri A.K. Saroha, CIT-DR, Shri Kapil Goel, Advocate

Hearing: 07.09.2016Pronounced: 09.09.2016

ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP :- PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP These appeals by the Revenue and the cross-objections filed by the assessee for the assessment years 2003-04 to 2008-09 are directed against the orders of learned CIT(A)-II, New Delhi dated 7th October, 2013, 8th October, 2013 & 9th October, 2013.

It is observed that the tax effect involved in these appeals by the Revenue is below `10 lakhs. The CBDT in its Circular No.21/2015 dated 10th December, 2015 has revised the monetary limit for filing of the departmental appeals to the ITAT at `10 lakhs which is evident from paragraph 3 of the Circular, which reads as under:-

“3. Henceforth, appeal/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:-

S.No. Appeals in Income-tax Monetary Limit (in Rs) matters 1. Before Appellate Tribunal 10,00,000/- 2. Before High Court 20,00,000/- 3. Before Supreme Court 25,00,000/-

It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.”

In paragraph 10 of the Circular, such monetary limits have been made applicable retrospectively. For ready reference, we reproduce paragraph 10 below:- “10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”

3 ITA-6700/D/2013 & 11 others

Therefore, the above Circular would be squarely applicable to the appeals under consideration before us.

Learned CIT-DR who appeared at the time of hearing before us was fair enough to admit that the tax effect in these appeals by the Revenue is below `10 lakhs.

In view of the above, we deem it proper to dismiss all the appeals filed by the Revenue having tax effect of less than `10 lakhs.

At the time of hearing before us, learned counsel for the assessee has not pressed the cross-objections filed by the assessee. Accordingly, the same are dismissed as not pressed.

In the result, all the appeals of the Revenue and the cross- objections of the assessee are dismissed. Decision pronounced in the open Court on 09.09.2016. Sd/- Sd/- (BEENA A. PILLAI (BEENA A. PILLAI) (BEENA A. PILLAI (BEENA A. PILLAI (G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL) G.D. AGRAWAL JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK.

ACIT, NEW DELHI vs. M/S. HORIZON SOLUTIONS INTEGRATION P. LTD., NEW DELHI

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