What did the Tribunal hold?

The Tribunal held that the Revenue's appeal was not maintainable due to the tax effect being below the monetary limit prescribed by CBDT Circular No. 21/2015. The circular was also noted to apply retrospectively to pending appeals.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal based on the tax effect and the applicability of a CBDT circular.

ACIT vs M/S. Dhara Vegetable Oil & Foods… | ITAT Delhi 2016

Q: What were the facts?

The Revenue filed an appeal against the order of the CIT(Appeals) for the assessment year 2004-05. The tax effect in the appeal was below the monetary limit specified by a CBDT circular.

Income Tax Appellate Tribunal, DELHI BENCH ‘B’ : NEW DELHI

Before: SHRI R.S. SYAL & SHRI A.T. VARKEY

For Appellant: Shri S.D. Kapila, R.R. Maurya and Sanjay Kumar, Advocates

PER A.T. VARKEY, JUDICIAL MEMBER :

This appeal, at the instance of the revenue, is filed against the order of the CIT (Appeals)-VIII, New Delhi dated 20.12.2010 for the assessment year 2004-05.

The tax effect in the appeal by the Revenue does not exceed the monetary limit of 10th Rs.10 lakhs specified in Circular No.21/2015 dated December,2015, F.No.279/Misc./142/2007-ITJ(Pt.).

We are of the opinion that the Circular of the CBDT results in the revenue appeal being not maintainable. Further this CBDT Circular, at para 10 specifies that the Instruction will apply retrospectively, to all pending appeals. We have examined the grounds of appeal

and have found that the tax effect on the quantum of income in dispute is below the monetary limit of Rs.10,00,000/- (Rupees Ten lakhs only).

4. Hence we dismiss the appeal filed by the Revenue on the ground that the tax effect in the present appeal does not exceed the monetary limit specified by the CBDT Circular No.21/2015 dated 10th December,2015, F.No. 279/Misc./142/2007-ITJ(Pt.) and hence not maintainable.

5. In case there is a mistake in the calculation or if the case is covered by any of the exception specified in the Circular, the revenue may file Misc. Application u/s 254(2) of the Income Tax Act 1961 pointing out the mistake and if the Bench is convinced of the mistake, the order will be recalled and the appeal will be restored for fresh disposal on merits.

6. In the result, the Revenue’s appeal is dismissed. Order pronounced in open court on this 23rd day of February, 2016.

ACIT, NEW DELHI vs. M/S. DHARA VEGETABLE OIL & FOODS CO. LTD., NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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