What did the Tribunal hold?

The Tribunal dismissed the appeal as not pressed and not maintainable. This was due to the tax effect being below the revised monetary threshold for appeals set by CBDT circulars.

The Revenue filed an appeal against the CIT(A)'s order deleting an addition made by the AO. The grounds for appeal related to the assessee not using land for agricultural purposes and not furnishing evidence of agricultural produce sale.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT based on the tax effect and CBDT circulars.

ACIT vs Sindhu Farms P.Ltd, Rohtak | ITAT Delhi 2021

Income Tax Appellate Tribunal, DELHI BENCH ‘G’: NEW DELHI

ORDER PER ANADEE NATH MISSHRA, AM: (A) This appeal by Revenue is filed against the order of Learned

Commissioner of Income Tax (Appeals)-Rohtak, [Ld. CIT(A)”, for short], dated 17.07.2018 for Assessment Year 2011-12. Grounds taken in this appeal of Assessee are as under:

“1. The Ld. CIT(A), Rohtak erred in law and on facts in deleting the addition of Rs. 1,48,81,158/- made by the AO (Joint Commissioner of Income Tax, Rohtak Range, Rohtak) for not using the land for agricultural purposes during the year under consideration.

The Ld. CIT(A), Rohtak erred in law and on facts in not appreciating the fact that the assessee did not furnish any documentary evidence with regard to sale of agricultural produce.

The Ld. CIT(A), Rohtak erred in law and on facts in not appreciating the fact that as the assessee has deviated the same his non- agricultural income into agricultural income (being the assessee also running business of sale of seeds etc. in this company).”

(B) At the outset, it was brought to our notice at the time of hearing, by learned Senior Departmental Representative ("Sr. DR", for short) for Revenue; that tax effect in this appeal is below Rs. 50,00,000/-. Vide recent CBDT Circular No.17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum threshold limit of tax effect for filing of appeals by Revenue in Income Tax Appellate Tribunal ("ITAT", for short) has been enhanced to Rs. 50,00,000/-. In a subsequent clarification issued by CBDT vide F. No. 279/Misc/M-93/2018-lTJ, dated 20/08/2019, it has been clarified by CBDT that the aforesaid revised monetary limit is also applicable to all pending appeals in ITAT. In view of the foregoing, it was submitted by Ld. Sr. DR for Revenue, that this appeal is not maintainable. He did not press the appeal. Therefore, this appeal is dismissed being not pressed; and also being not maintainable having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with aforesaid CBDT Circular No. 3 of 2018 in the light of aforesaid clarification dated 20/08/2019.

(C) Before leaving, we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961; seeking recall of this order and, for restoration of this appeal if it is found that appeal of Revenue is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.

(D) In the result, this appeal by Revenue is dismissed.

This order was already pronounced orally on 09th December, 2021 in the Open Court, in the presence of representatives of both sides, after conclusion of hearing. Now, this written order is signed today on 10.12.2021.

ACIT, ROHTAK CIRCLE, ROHTAK vs. SINDHU FARMS P.LTD, ROHTAK

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