ACIT, NEW DELHI vs. M/S DEX AVIATION PVT. LTD, NEW DELHI

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ITA 2767/DEL/2010Status: DisposedITAT Delhi24 February 2016AY 2006-073 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal should be dismissed as the tax effect was less than the revised monetary limit of Rs. 10,00,000/- for filing appeals, as per CBDT Circular No. 21 of 2015.

What were the facts?

The Revenue filed an appeal before the ITAT for assessment year 2006-07. The assessee's representative argued that the appeal should be dismissed due to low tax effect.

What were the issues?

Whether an appeal filed by the Revenue with a low tax effect, below the prescribed monetary limit, should be dismissed based on a retrospective CBDT circular.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : B : NEW DELHI

Before: SHRI R.S. SYAL, AM & SHRI A.T. VARKEY, JM

For Appellant: Ms S. Deb Ray, Advocate, Shri Sunil Chander Sharma, CIT,DR
Hearing: 24.02.2016Pronounced: 24.02.2016

This appeal by the Revenue arises out of the order passed by the CIT(A) on 31.3.2010 in relation to the assessment year 2006-07.

2.

We have heard the rival submissions and perused the relevant material on record. At the outset, the ld. AR submitted that this appeal of the Revenue is liable to be dismissed because of low tax effect. It is noticed that the CBDT has issued Circular No. 21 of 2015 dated 10.12.2015 with retrospective effect, revising the monetary limit to Rs.10,00,000/- for not filing appeals before the Tribunal. The ld. D.R., although supported the order of the Assessing Officer, but could not controvert the fact that tax effect involved in this appeal is less than Rs.10,00,000/-.

3.

From para 10 of the above Circular it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT wherein tax effect is less than Rs.10,00,000/-. Going by the prescription of the aforenoted Circular, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect is admittedly less than the prescribed limit for not filing the appeals. Ex conseqeunti, we dismiss the instant appeal without going into merits of the case.

4.

In the result, the appeal of the Revenue stands dismissed.

Order pronounced in the open Court on 24.02.2016.

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