DCIT, NEW DELHI vs. M/S CECIL WEBBER ENGINEERING LTD., NEW DELHI

PDF · subscribers
ITA 3741/DEL/2013Status: DisposedITAT Delhi11 August 2016AY 2008-094 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 due to low tax effect, which was less than the monetary limit prescribed by the CBDT circular. The circular has retrospective effect and pending appeals below the specified limits may be withdrawn or not pressed.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The Respondent contended that the appeal should be dismissed due to low tax effect as per CBDT Circular No. 21/2015.

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 circular, considering the circular's retrospective applicability.

AI-generated summary — verify with the full judgment below

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

Before: SHRI R. S. SYAL & Smt. BEENA A. PILLAI

For Appellant: Shri Anil Kr. Sharma, Sr. DR
For Respondent: Shri Aharnish Kapoor, CA
Hearing: 10.08.2016Pronounced: 11.08.2016

(Appellant) (Respondent) Appellant by : Shri Anil Kr. Sharma, Sr. DR Respondent by : Shri Aharnish Kapoor, CA Date of hearing: 10.08.2016 Date of Pronouncement: 11.08.2016 ORDER

PER BEENA A. PILLAI, JM:

1.

The appellant (hereinafter referred to as 'the revenue') by filing the aforesaid appeal, sought to set aside the impugned order dated 18.02.2013 passed by Ld. CIT(A)-VI, New Delhi qua the Assessment Year 2008-09.

2.

Perusal of the aforesaid appeal filed by the Revenue apparently show that the same is having low tax effect as per CBDT Circular No.21/2015 dated 10th December 2015 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.10,00,000/- and this factual position has been fairly conceded by the 2 I.T.A.No.3741/Del/2013 Ld. D.R. The Ld. A.R. contended that the appeal of the Revenue may be dismissed in the light of CBDT Circular (supra).

3.

We have heard parties on the issue in controversy and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised and the relevant portion of the aforesaid circular is extracted as under:

"3. Henceforth, appeals/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 matters Monetary Limit (Rs.) 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.

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. "

4.

The contention of Ld. Sr. D.R. that he needs some time to procure the report from the Assessing Officer to work out the tax effect, is not tenable because when apparently, the appeal in question is covered under CBDT Circular No.21/2015 dated 10th December 2015 (supra), the Revenue cannot import the facts within the knowledge of the Assessing

3 I.T.A.No.3741/Del/2013 Officer to further prolong the matter. However, in case any fact which is otherwise not on record, warrants the restoration of the present appeal, the revenue is at liberty to approach the Tribunal under relevant provisions of law.

5.

In view of the CBDT Circular No.21 dated 10.12.2015 having retrospective effect and what has been discussed above, we are of the considered view that the aforesaid appeal is not maintainable because of low tax effect i.e. less than Rs.10,00,000/- hence, the aforesaid appeals filed by the Revenue is hereby dismissed having been become infructuous. Order pronounced in the open court on 11th Aug., 2016.

Sd./- Sd./-

Recent GST High Court judgments

Search GST case law →