DCIT, NEW DELHI vs. M/S. UNITED TECHNOLOGIES CORPORATION INDIA PVT. LTD., NEW DELHI

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ITA 6777/DEL/2015Status: DisposedITAT Delhi04 October 2018AY 2011-124 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 as per CBDT Circular No. 3/2018, appeals with a tax effect below Rs. 20 lakhs are not maintainable. The Revenue's appeal did not fall under any exceptions to this circular.

What were the facts?

The Revenue filed an appeal against an assessment order. The assessee contended that the tax effect in the appeal was less than Rs. 20 lakhs, making it non-maintainable. The Revenue's counsel did not dispute this fact.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal due to a low tax effect, as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 268A,Section 143(3),Section 144C(4),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘I-2’ NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI L.P. SAHU

For Respondent: Ms. Anchal Khandelwal, Sr. DR
Hearing: 04.10.2018Pronounced: 04.10.2018

ORDER PER SHRI BHAVNESH SAINI, J.M.

This appeal by Revenue has been directed against the assessment order dated 27.10.2015 passed u/s 143(3) r.w.s.

144C(4) of the I.T. Act passed by DCIT, Circle 27(1), New Delhi in pursuance to the order of DRP-2, New Delhi dated 31.08.2015 on the following ground:

1. “On the facts and in the circumstances of the case, the DRP-2 erred in directing the AO/TPO to consider data in regard to the comparables as available by the 30.11.2011 but not beyond this date while interrupted Rule 10D(4) of the I.T. Rules, 1962.”

2.

Ld. Counsel for the assessee at the outset, submitted that the tax effect in the departmental appeal is less than Rs. 20 lakhs.

Therefore, appeal of the Revenue is not maintainable. Working of same is given in the Paper Book and provided to the Ld. DR. 2.1 Ld. DR did not dispute the contention of Ld. Counsel for the assessee and also submitted that after rectification order passed u/s 154 of the Act, there is no demand against the assessee.

3.

Admittedly, the tax effect in the present appeal is less than Rs. 20 lakhs. Vide Circular No. 3/2018 dated 11.07.2018 issued by CBDT u/s 268A of I.T. Act, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs. 20 lakhs.

It is also directed that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in Tribunals.

Pending appeals below the specified tax limit may be withdrawn/not pressed. The Ld. DR in view of the Board’s Circular above did not press the departmental appeal. The case of the Department would not fall in the exceptions provided in the above Board Circular. In the result, the departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and, therefore, the appeal of the Department is liable to be dismissed.

4.

In the result, the appeal of the Department is dismissed.

Order pronounced in the open court.

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