DCIT, NEW DELHI vs. M/S. IL&FS ENVIRONMENTAL INFRASTRUCTURE AND SERVICES LTD., NEW DELHI

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ITA 2029/DEL/2014Status: DisposedITAT Delhi23 June 2016AY 2010-113 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 allowed the revenue to withdraw its appeal based on CBDT Circular No. 21/2015 due to the low tax effect. Consequently, the assessee's cross-objections were dismissed as infructuous.

What were the facts?

The revenue filed an appeal against the CIT(A)'s order deleting a disallowance of selling and distribution expenses. The assessee filed cross-objections supporting the CIT(A)'s order. The tax effect involved in the revenue's appeal was below Rs. 10 lakhs.

What were the issues?

Whether the departmental appeal should be withdrawn due to low tax effect as per CBDT circular. The impact of withdrawal of revenue's appeal on assessee's cross-objections.

AI-generated summary — verify with the full judgment below

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

Before: SHRI S.V. MEHROTRA : & SMT. BEENA A. PILLAI:

For Appellant: Smt. Mahua Bhattacharjee CA
For Respondent: Shri Rajesh Kumar Sr. DR, Smt. Mahua Bhattacharjee CA
Hearing: 20/06/2016

Heard together (2 matters)

C.O. No. 3/Del/2015
ITA no. 2029/Del/2014

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI: JUDICIAL MEMBER Asstt. Yr: 2010-11 DCIT, Circle 33(1), Vs. IL & FSs Environmental Infrastructure and New Delhi. Services Ltd. 4th Floor, Dr. Gopal Das Bhawan, 28, Barakhamba Road, New Delhi. PAN: AABCI 7370 R C.O. No. 3/Del/2015 ( out of Asstt. Yr: 2010-11 IL & FSs Environmental Vs. DCIT, Circle 33(1), Infrastructure and New Delhi. Services Ltd. ( Appellant ) (Respondent) Department by : Shri Rajesh Kumar Sr. DR Assessee by : Smt. Mahua Bhattacharjee CA Date of hearing : 20/06/2016. Date of order : 23/06/2016. O R D E R PER S.V. MEHROTRA, A.M:

The revenue is in appeal and the assessee has filed cross-objections against the order dated 31.12.2013, passed by the ld. CIT(A)-XV, New Delhi, relating to A.Y. 2010-11.

2.

Sole effective ground raised by the revenue in its appeal is as under: “On the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the disallowance of Rs. 25,08,782/- made out of selling & distribution expenses.”

3.

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.

4.

After considering rival submissions, the departmental appeal is treated as withdrawn in terms of Board’s Circular, referred to above.

5.

The cross objection filed by the assessee only supports the order of ld. CIT(A). Since the revenue has withdrawn its appeal on account of tax effect, the cross objection filed by the assessee has become infructuous and is liable to be dismissed accordingly.

6.

In the result, revenue’s appeal is dismissed having been withdrawn and the assessee’s cross-objection is dismissed, as infructuous.

Order pronouncement in open court on 23/06/2016.

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