ACIT, NEW DELHI vs. M/S ORIENT ABRASIVES LTD., NEW DELHI

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ITA 6319/DEL/2016Status: DisposedITAT Delhi04 January 2021AY 2011-123 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 noted that the CBDT's circular revised the monetary limit for appeals to Rs. 50 Lacs and clarified its applicability to pending appeals. Therefore, the appeal was not maintainable.

What were the facts?

The Revenue preferred an appeal before the Income Tax Appellate Tribunal (ITAT) against an order for Assessment Year 2011-12. The Departmental Representative pointed out that the appeal was to be withdrawn due to a low tax effect.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT given the low tax effect and the applicability of the revised CBDT monetary limits.

AI-generated summary — verify with the full judgment below

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

For Appellant: Ms. Pramita M. Biswas
Hearing: 04.01.2021Pronounced: 04.01.2021

ORDER PER SUDHANSHU SRIVASTAVA, JM:

This appeal is preferred by the Revenue against order dated 05.10.2016 passed by the Learned Commissioner of Income Tax (Appeals)-7, New Delhi {CIT(A)} for Assessment Year 2011-12.

DCIT vs. M/s Orient Abrasivers Ltd.

2.0 However, Ld. Departmental Representative (DR) pointed out that the present appeal is to be withdrawn as the tax effect involved in the case is below Rs.50 Lacs.

3.0 The CBDT vide Circular No.17/2019 dated 08.08.2019 has revised the monetary limit for filing the appeals before the Tribunal to Rs.50 Lacs. Further, CBDT vide letter dated 20.08.2019 has also clarified that Circular No.17/2019 would be applicable to all pending appeals. In such circumstances, the present appeal filed by the Revenue in case of low tax effect is not maintainable.

4.0 Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for re-institution of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescribed in para-10 of the Circular dated 11.07.2018.

5.0 In conclusion, by applying the CBDT Circular dated 08.08.2019 and letter dated 20.08.2019 (supra), the captioned appeal of the Revenue is dismissed as withdrawn/not pressed.

DCIT vs. M/s Orient Abrasivers Ltd.

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

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