ACIT, NEW DELHI vs. SH. EMPIRE CASTING PVT. LTD., NEW DELHI

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ITA 4017/DEL/2011Status: DisposedITAT Delhi01 February 2016AY 2002-033 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 Revenue's appeal was not maintainable due to the low tax effect, as per CBDT Circular No. 21/2015. Consequently, the assessee's cross-objection became academic.

What were the facts?

The Revenue filed an appeal and the assessee filed a cross-objection against an order of the CIT(Appeals). The tax effect in the Revenue's appeal was below the monetary limit specified in a CBDT circular.

What were the issues?

Whether the Revenue's appeal is maintainable when the tax effect is below the prescribed monetary limit as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 254(2)

AI-generated summary — verify with the full judgment below

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

Before: SHRI A.T. VARKEY & SHRI PRASHANT MAHARISHI

For Appellant: Shri A.K. Jain, CA

PER A.T. VARKEY, JUDICIAL MEMBER :

The appeal by the revenue and the cross objection by the assessee are filed against the order of the CIT (Appeals)-III, New Delhi dated 07.06.2011 for the assessment year 2002-03.

./2011 CO No.206/Del/2012 2. 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.). 3. 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. Accordingly, the cross objection filed by the assessee has become academic and hence, dismissed.

6. 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.

7. In the result, the Revenue’s appeal and the cross objection by the assessee are dismissed. Order pronounced in open court on this 1st day of February, 2016.

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