DCIT, NEW DELHI vs. USG BUILDWELL PVT. LTD., NEW DELHI

This appeal filed by the Revenue is directed against the order passed by the CIT(A) on 21.11.2014 in relation to the Assessment Year 2006-07.

The Department has requested for adjournment in all the cases, including the present case, fixed today for hearing before the Bench by giving the reason that: “CIT( DR) is not available.” There is neither any one from the side of the Revenue to represent the Revenue nor to explain the reasons as to why the Bench be allowed to crash. The ld. AR strongly opposed to the granting of adjournment. I am satisfied that the Revenue’s prayer for adjournment cannot be accepted. The same is, therefore, rejected and the appeal is being taken up for disposal on merits ex parte qua the Revenue.

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.

I have heard the ld. AR and perused the relevant material on record. Going by the prescription of the aforenoted Circular, I am of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit for not filing the appeals.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 I dismiss the instant appeal without going into merits of the case.

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