DCIT, CIRCLE, GURGAON vs. THE GURGAON CENTRAL CO-OP.BANK LTD, GURGAON

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ITA 6953/DEL/2017Status: DisposedITAT Delhi14 May 2019AY 2014-154 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 held that the appeal was not maintainable as the tax effect was below the prescribed monetary limit. The CBDT instructions, having statutory force under Section 268A, are applicable to pending appeals.

What were the facts?

The Revenue filed an appeal before the ITAT. Both parties admitted that the tax effect on the disputed issue was less than Rs. 20,00,000/-. The CBDT Circular No. 3/2018 revised the monetary limit for filing appeals to the Tribunal to Rs. 20,00,000/-.

What were the issues?

Whether an appeal filed by the Revenue is maintainable before the ITAT when the tax effect is below the monetary limit prescribed by the CBDT circular. Applicability of CBDT circulars to pending appeals.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI L.P. SAHU

For Appellant: Shri Prashant Sharma, CA
For Respondent: Shri F.R. Meena, Sr. DR, Shri Prashant Sharma, CA
Hearing: 14/05/2019

This is an appeal filed by the Revenue directed against the order of Commissioner of Income Tax (APPEALS)-1, Gurgaon dated 23.08.2017 pertaining to the assessment year 2014-15.

2. During the course of hearing, it was admitted by both the parties that the tax on disputed issue as raised in the departmental appeal is less than Rs. 20,00,000/-. Hence the present appeal of the Revenue is not maintainable in view of recent Circular of CBDT No. 3/2018 dated 11th July, 2018, whereby the monetary limit of tax effect for not filing appeals before the Tribunal has been revised to Rs. 20,00,000/-.

Sir, Sub : Withdrawal of appeals in consequent to circular No. 3/2018 dated 11.7.2018 – reg.

Kindly refer to the subject cited above.

2.

In pursuance to CBDT Circular No. 03-2018 dated 11.07.2018, vide waich the monetary limits of tax effect for filing appeals before the various appellate authorities have been revised and further vide para 13 of said Circular that pending appeals below the specified tax limits are to be withdrawn/not pressed, the appeals in the cases pertaining to this circle as mentioned in the enclosed list, pending before Hon'ble ITAT, Delhi Bench, New Delhi are required to be withdrawn on account of low tax effect involved in the said appellate as compared to the revised monetary limit of tax effect for filing appeal before Hon'ble ITAT specified in Para 3 of said circular 03/2018.

3. It is further submitted that as per records of this none of these cases falls in the exceptions as mentioned in Para 10 of CBDT's Circular No. 03/2018 dated 11.07.2018 amended by CBDT letter bearing No. 279/ Misc/42.2007- ITJ(Pt.) dated 20.08.2018.

4· It is, therefore, requested that the appeals pending before the Hon'ble ITAT Delhi Bench in the cases as detailed in the enclosed list may kindly be withdrawn/not pressed. Yours faithfully,

(Batti Lal Meena) Asst.Commissioner of Income Tax TDS Circle, Gurgaon

3.

Having considered the rival submissions and the material available on record, we find that tax effect is below the monetary limit as prescribed in CBDT circular. These instructions of CBDT have now statutory force within the provisions of section 268A and are made applicable to the pending appeals also by virtue of para 13 of the Circular.

4.

This Circular contains clear instructions to the Department to withdraw or not to press such appeals filed before the ITAT wherein tax effect involved does not exceed Rs. 20,00,000/-. It is not the case of the Revenue that the present appeal comes within the sweep of exclusion clauses as given in para No. 10 & 11 of the said Circular. Thus, going by the prescription of the afore-noted CBDT instructions, and without going into merits of the case, we dismiss the instant appeal filed by the Revenue, being not maintainable, as the tax effect involved in this appeal is less than Rs. 20.00 lacs.

5.

In the result, the appeal of the Revenue stands dismissed as indicated above.

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