ITO, NEW DELHI vs. M/S NAMEDI LEASING & FINANCE LTD., NEW DELHI

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ITA 2174/DEL/2010Status: DisposedITAT Delhi14 March 2016AY 2004-053 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 noted that CBDT Circular No. 21 of 2015 mandates not filing or withdrawing appeals with a tax effect below Rs. 10 lacs, even for pending appeals. Therefore, the appeal should not have been filed.

What were the facts?

The department filed an appeal before the ITAT. The respondent's counsel pointed out that the tax effect in the appeal was less than Rs. 10 lacs. The department's counsel could not controvert this fact.

What were the issues?

Whether the departmental appeal should be entertained when the tax effect is below the monetary limit prescribed by CBDT circulars and Section 268A of the Income Tax Act.

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 ‘E’, NEW DELHI

Before: SHRI G.D. AGARWAL, HON’BLE & SMT. BEENA A PILLAI

Pronounced: 14.03.2016

This is an appeal by the department against the order dated 16.02.2010 of CIT(A)-XVI, New Delhi. 2. The ld. DR requested that the appeal may be adjourned for another date convenient. 3. The ld. AR stated that the tax effect in the departmental appeal is less than Rs. 10 lacs.

Therefore, the Revenue ought not to have filed the appeal as directed by the CBDT’s latest circular no. 21/2015 dated 10/12/2015.

4.

We have considered the submission of the ld.AR.

5.

During the course of hearing, the ld. D.R., although supported the order of the Assessing Officer, but could not controvert this fact that tax effect in this appeal is less than Rs.10,00,000/-.

6.

It is noticed that the CBDT has issued Circular No.21 of 2015 dated 10.12.2015, vide which it has revised the monetary limit to Rs.10,00,000/- for not filing the appeal before the Tribunal. From Clause 10 of the above circular it is clear that these instructions are applicable to the pending appeals also and there is clear cut instruction to the department to withdraw or not to press the appeals filed before the ITAT wherein tax effect is less than Rs.10,00,000/-. These instructions are operative retrospectively to the pending appeals.

7.

Keeping in view the CBDT Circular No.21 of 2015 dated 10.12.2015 and also the provisions of Section 268A of Income Tax Act, 1961, we are of the view that the Revenue should not have filed the instant appeal before the Tribunal.

8.

In view of the above, without going into merits of the case, we dismiss the appeal filed by the department.

9.

In the result, appeal of the department is dismissed. Order Pronounced in the Court on 14/03/2016

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