ACIT CIRCLE-2, MUZAFFARNAGAR vs. AVADH ALLOYS (P) LTD, MUZAFFARNAGAR

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ITA 3047/DEL/2008Status: DisposedITAT Delhi13 May 2016AY 2005-20062 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 CBDT circular is binding on the Revenue and therefore the appeal is not maintainable. The appeal was dismissed as per the instructions in the circular.

What were the facts?

The Revenue filed an appeal before the ITAT. At the hearing, the Revenue's counsel pointed out a CBDT circular which stipulated that appeals would not be filed if the tax effect was less than Rs. 10 lakhs. The tax effect in this appeal was below the stipulated limit.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the Tribunal given the tax effect is below the monetary limit prescribed by the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 68,Section 43B

AI-generated summary — verify with the full judgment below

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

Before: SMT DIVA SINGH & SHRI PRASHANT MAHARISHI

Hearing: 17/03/2016Pronounced: 13/05/2016

O R D E R PER PRASHANT MAHARISHI, A. M.

1.

This is appeal filed by the revenue against the order of the ld CIT (A), Muzaffarnagar dated 10.07.2008 for the Assessment Year 2005-06.

2.

At the outset of the hearing itself, the ld. DR brought to our attention that CBDT vide Circular No.21/2015 dated 10th December, 2015 has decided that the revenue would not prefer an appeal before the Tribunal if the tax effect is less than Rs.10 lakhs. Therefore, he pleaded that the appeal of the revenue be decided as per the instruction of the CBDT. Ld AR also reiterated same facts.

3.

We have heard both the sides on the issue and perused the material. We find that the CBDT vide circular dated 10.12.2015 has revised the monetary limit for filing the appeal by the department before Income Tax Appellate Tribunal, Hon’ble High Courts and Hon’ble Supreme Court. The relevant para of the aforesaid circular is reproduced as under :- “3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:- Sl.No. Appeals in Income-tax matters Monetary Limit (in Rs.) 1. Before Appellate Tribunal 10,00,000 2. Before High Court 20,00,000 3. Before Supreme Court 25,00,000

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