ACIT, CIRCLE- 27(1), NEW DELHI vs. UNITED INFOPLANET PVT. LTD., NEW DELHI

(A) This appeal by Revenue is filed against the order of Learned Commissioner of Income Tax (Appeals)- 9, New Delhi, [“Ld. CIT(A)”, for short], dated 06.03.2017 for Assessment Year 2012-13. Grounds taken in this appeal of Revenue are as under:

“1. Whether in the facts and circumstances of the case, the Ld. CIT(A) is legally justified in treating the fit out hire chares as income from business and not relating the same as income from house property. 2. Whether in the facts and circumstances of the case, the Ld. CIT(A) is legally justified in allowing the expenses debited to P & L a/c including the Page 1 of 4

ITA No.- 5054/Del/2017 United Infoplanet Pvt. Ltd. interest on borrowing which had been restricted to Rs. 20,64,300/- as against Rs. 1,09,26,013/-. 3. That the appellant craves leave to add, alter amend or forgo any ground(s) of appeal either before or at the time of hearing of the appeal.”

(A.1) At the time of hearing before us, the learned Senior Departmental Representative (“Ld. DR”, for short) informed that the correct Assessment Year for this appeal is Assessment Year 2012-13; and not 2013-14 (as incorrectly stated in Form No.-36). The Ld. Counsel for assessee, as well as Ld. Sr. DR; both submitted before us at the time of hearing, that the Assessment Year be read as Assessment Year 2012-13, and not as Assessment Year 2013-14. In view of the foregoing, and as both sides are in agreement, this appeal vide in which grounds of appeal are as aforesaid; is treated as appeal for Assessment Year 2012-13; and not for Assessment Year 2013-14.

(B) Further, it was also brought to our notice at the time of hearing, by learned Counsel for assessee, 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-ITJ, 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 contended by Ld. Counsel for assessee, that this appeal is not maintainable. Learned Senior Departmental Representative [“Ld. Sr. DR”, for short) Page 2 of 4

ITA No.- 5054/Del/2017 United Infoplanet Pvt. Ltd. agreed with this contention of the Ld. Counsel for assessee, and 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. Our decision was orally pronounced in the Open Court in the presence of representatives of both sides, after conclusion of hearing on 07/04/2021. Now, this written order is signed today on 07/04/2021.