ACIT, MEERUT vs. M/S. SONAL INDUSTRIES ROORKEE ROAD, MEERUT

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ITA 133/DEL/2015Status: DisposedITAT Delhi11 March 2016AY 2006-072 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 filed by the Revenue was not maintainable due to the low tax effect, as per the binding CBDT circular. The cross-objection filed by the assessee was consequently dismissed as infructuous.

What were the facts?

The Revenue filed an appeal before the ITAT. At the hearing, the Revenue pointed out a CBDT circular stating that appeals with a tax effect below Rs. 10 lakhs should not be filed.

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 a CBDT circular.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES, NEW DELHI

Before: SHRI.I.C. SUDHIR & SHRI PRASHANT MAHARISHI

Hearing: 17/12/2015Pronounced: 11/03/2016

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

1.

This appeal is preferred by the revenue against the order of the CIT(A), Meerut dated 29.10.2014 for the Assessment Year 2006-07.

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. I 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 :-

Page 2 of 2 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 It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.”

4.

We find that the tax effect involves in the appeal of the Revenue is below Rs.10 lakhs. There is no dispute that the Board’s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present appeal in view of the aforesaid instruction sicne the tax effect in the instant appeal is less than the amount of Rs.10 lakhs.

5.

In view of the above, Circular No.21 dated 10.12.2015 will apply to all pending appeals. Therefore the precedent, it is held that the appeal is not maintainable in the instant case as the tax effect is less than Rs.10 lakhs. Accordingly, it is held that appeal filed by the revenue is not maintainable. Since the appeal of the revenue is not maintainable on account of low tax effect, therefore, the cross objection of the assessee becomes infractuous and accordingly dismissed.

6.

In the result, appeals filed by the department is dismissed. Order pronounced in the open court on 11.03.2016.

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