ADIT, NEW DELHI vs. M/S. PHILIP MORRIS SERVICES INDIA SA, NEW DELHI

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ITA 1900/DEL/2012Status: DisposedITAT Delhi16 February 2016AY 2005-063 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 as the tax effect was less than the prescribed limit. Following the CBDT circular, the Tribunal directed the withdrawal or non-pressing of such appeals.

What were the facts?

The Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT) for the assessment year 2005-06. During the hearing, the assessee pointed out that the tax effect in the appeal was below the revised monetary limit for filing appeals to the Tribunal.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the Tribunal given the revised monetary limits for appeals as per CBDT circular.

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 BENCHES : I-1 : NEW DELHI

Before: SHRI R.S. SYAL, AM & SHRI KULDIP SINGH, JM

For Appellant: Shri Neeraj Jain, Advocate, Shri Rahul Garg, Sr. DR
Hearing: 16.02.2016Pronounced: 16.02.2016

This appeal by the Revenue arises out of the order passed by the CIT(A) on 26.12.2011 in relation to the assessment year 2005-06.

2.

During the course of hearing, the ld. AR submitted that pursuant to the mandate of section 268A, 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. He further submitted that as the tax effect involved in the instant appeal is less than Rs.10,00,000/-, the extant appeal is not maintainable. 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.

We have heard the parties and perused the relevant material on record. 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Circular, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit for not filing the appeals. 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/-. 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 16.02.2016.

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