What did the Tribunal hold?

The Tribunal allowed the revenue to withdraw its appeal. This was based on a CBDT circular stipulating that appeals with a tax effect below Rs. 10 lakhs should not be filed or pressed.

The revenue appealed against the CIT(A)'s order deleting an addition of Rs. 14,14,942/-. The issue concerned the applicability of a notification regarding tax deduction at source.

What were the issues?

The primary issue was whether a notification regarding tax deduction at source was clarificatory. However, the appeal was disposed of based on the tax effect and CBDT circular.

DCIT vs M/S. Paras Dyes & Chemicals Pvt… | ITAT Delhi 2016

Income Tax Appellate Tribunal, DELHI BENCH “C” NEW DELHI

Before: SHRI S.V. MEHROTRA : & SHRI C.M. GARG :

For Appellant: Shri Amrit Lal Sr. DR

Date of hearing : 21-07-2016 Date of order : 25-07-2016. O R D E R PER S.V. MEHROTRA, A.M:-

This is revenue’s appeal against the order dated 28.09.2015, passed by the ld. CIT(A)-VII, New Delhi, relating to A.Y. 201213. 2. Sole ground raised by the revenue in its appeal, are as under: “On the facts and in the circumstances of the case, the ld. CIT(A) has erred in law in deleting the addition of Rs. 14,14,942/- treating the Notification No. 56/2012 dated 31.12.2012 effective from 01.01.2013 for the deduction of tax payment to Indian Bank under the Income-tax Act, 1961 as merely of a clarificatory in nature.”

3. None put in appearance on behalf of the assessee at the hearing. We proceed to dispose of the revenue appeal, ex parte, qua the assessee.

Ld. DR at the outset submitted that, prima facie, the tax effect involved in the present appeal is less than Rs. 10 lakhs. Therefore, in terms of CBDT Circular No. 21/2015 dated 10.12.2015, stipulating that no departmental appeal, involving tax effect below Rs.10 lakhs, shall be filed before the ITAT and further that such instruction would apply retrospectively and the pending appeals below the specified tax limit of Rs.10 lakh may be withdrawn/not pressed, the department may be allowed to withdraw the appeal, provided that it should not be considered as a precedent in the subsequent years of the acceptance of issues involved in this appeal and, therefore, if in the subsequent year similar issue arises before the ITAT, where the appeal is above the tax limit, as prescribed in the Board’s Circular, the same should be decided on merits.

After hearing ld. DR, the departmental appeal is treated as withdrawn in terms of Board’s Circular, referred to above.

In the result, revenue’s appeal is dismissed having been withdrawn. Order pronounced in open court on 25-07-2016.

DCIT, NEW DELHI vs. M/S. PARAS DYES & CHEMICALS PVT. LTD., NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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