DCIT, NEW DELHI vs. M/S. SHARP MENTHOL INDIA LTD., NEW DELHI

ITA 5436/DEL/2012Status: DisposedITAT Delhi13 September 2018AY 2009-102 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 tax effect was indeed below Rs. 20 lakhs, and therefore, the appeal filed by the Revenue was not maintainable in view of the CBDT Circular. The Revenue was permitted to file a Miscellaneous Application for revival if the case fell under amended provisions of the circular.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The assessee contended that the tax effect was below Rs. 20 lakhs, making the appeal not maintainable as per CBDT Circular No. 03/2018.

What were the issues?

Whether an appeal filed by the Revenue is maintainable when the tax effect is below the threshold prescribed by the CBDT Circular, and whether the circular is applicable to pending appeals.

Which sections of the Income-tax Act were involved?

CBDT Circular No.03/2018

AI-generated summary — verify with the full judgment below

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

Before: SHRI R. K. PANDA & MS. SUCHITRA KAMBLE

For Appellant: Shri S. D. Kapila, Adv, Shri R. R. Maurya, Adv

For Respondent: Shri S. S. Rana, CIT-DR, Shri S. D. Kapila, Adv, Shri R. R. Maurya, Adv

Department by : Shri S. S. Rana, CIT-DR Assessee by : Shri S. D. Kapila, Adv. Shri R. R. Maurya, Adv. Date of hearing : 13-09-2018 Date of pronouncement : 13-09-2018 O R D E R

PER R. K. PANDA, AM :

This appeal filed by the Revenue is directed against the order dated 06.07.2012 of CIT(A)- XI, New Delhi relating to assessment year 2009-10.

The ld. counsel for the assessee, at the outset, submitted that the tax effect involved in the grounds raised

by the Revenue is below Rs.20 lakhs. Therefore, in view of the latest CBDT Circular No.03/2018 [F.No.279/Misc.142/2007-ITJ (Pt)] dated 11th July, 2018 which is applicable even to pending appeals, the appeal filed by the Revenue is not maintainable.

3. The ld. DR on the other hand fairly admitted that the tax effect involved in the impugned appeal is less than Rs.20 lakhs and therefore, the appeal filed by the Revenue has to be dismissed. He, however, requested that if at any point of time it is noticed that the case of the Revenue falls under any of the amended para 10 of the Circular vide Notification dated 20.08.2018, the Revenue should be allowed to file Miscellaneous Application for revival of the appeal.

4. After hearing both the sides, we find the tax effect involved in the grounds raised by the Revenue in the impugned appeal is admittedly below Rs.20 lakhs. Therefore, the appeal filed by the Revenue is not maintainable in view of the CBDT Circular No.03/2018 dated 11th July, 2018 which is applicable even to pending appeals. However, if the Revenue at any point of time finds that the case of the Revenue falls under any of the clauses as per amended para 10 of the said Circular vide Notification dated 20.08.2018, the Revenue is at liberty to file Miscellaneous Application for revival of the appeal.

5. In the result, the appeal filed by the Revenue is dismissed in the terms indicated above. Order pronounced in the open Court at the time of hearing itself i.e. on this 13th September, 2018.

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