ITO, NEW DELHI vs. SH. VINAY GOEL, NOIDA

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ITA 113/DEL/2014Status: DisposedITAT Delhi19 April 2016AY 2006-073 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 due to the low tax effect, as per CBDT Circular No. 21/2015. The appeal was dismissed without going into the merits of the case.

What were the facts?

The Revenue filed an appeal before the ITAT concerning Assessment Year 2006-07. The tax effect involved in the appeal was less than Rs. 10 lakhs.

What were the issues?

Whether an appeal filed by the Revenue with a tax effect below the prescribed limit in the CBDT circular is maintainable before the ITAT.

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 “H” NEW DELHI

For Appellant: Shri V.R. Sonbhadra, Sr. DR
Hearing: 13/04/2016

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H” NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI : JUDICIAL MEMBER Asstt. Yr: 2006-07 Income-tax Officer, Vs. Vinay Goel, Ward-25(4), New Delhi. F-1, Sector-11, Noida. PAN: AJMPG 0960 E ( Appellant ) (Respondent) Appellant by : Shri V.R. Sonbhadra, Sr. DR Assessee by : Sh. Sachin Kumar CA Date of hearing : 13/04/2016. Date of order : 19/04/2016. O R D E R PER S.V. MEHROTRA, A.M:

This is revenue’s appeal against the order dated 21.10.2013, passed by the ld. CIT(A)-XXIV, New Delhi in appeal no. 296/08-09, relating to A.Y. 2006-07. 2. Prima facie, the tax effect involved in the present appeal is less than Rs. 10 lakhs. The recent CBDT Circular No. 21/2015 dated 10.12.2015 stipulates that no departmental appeal, involving tax effect below Rs.10 lakhs, shall be filed before the ITAT. Para 10 of the Circular specifies that such instruction would apply retrospectively and the pending appeals below the specified tax limit of Rs.10 lakh may be withdrawn/not pressed.

3.

Ld. DR could not controvert the aforementioned factual position. He, however, referring to clarification given in paragraph 7 of the Circular, submitted that withdrawal of the appeal by the Revenue on account of low tax effect should not be considered as a precedent in the subsequent years of the acceptance of issues involved in this appeal and, therefore, if in the subsequent year similar issue arises before the ITAT, where the appeal is above the tax limit, as prescribed in this Circular, the same should be decided on merits.

4.

Since the tax effect involved in the present departmental appeal is below 10 lakhs, therefore, in view of recent CBDT Circular No. 21/2015 dated 10.12.2015, this appeal is not maintainable in terms of section 268A(1) of the Income-tax Act. However, we may clarify that if on receipt of this order, the Assessing Officer finds that the tax effect involved is above Rs.10 lacs or in any other manner, the circular is not applicable in view of exceptions culled out in the circular, he will be at liberty to take such steps, as deem fit, to recall the order. We also agree with the contention of the learned DR that this order would not be considered as an acceptance by the Revenue on the issue involved in this appeal and will not be an estoppel for the Revenue to take up the issue involved in this appeal before the ITAT on merits if the tax effect in those years is more than 10 lakhs.

5.

Keeping in view the aforementioned CBDT Circular and the provisions of section 268A of the Income-tax Act, 1961, without going into merits of the case, we dismiss the instant appeal filed by the Revenue as tax effect in this appeal is less than Rs.10.00 lacs.

6.

In the result, revenue’s appeal stands dismissed. Order pronouncement in open court on 19/04/2016.

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