DCIT, NEW DELHI vs. M/S. FX ENTERPRISES SOLUTIONS INDIA PVT. LTD., NEW DELHI

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ITA 681/DEL/2012Status: DisposedITAT Delhi28 January 2016AY 2006-072 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Department's appeal was not maintainable due to the low tax effect, as per the binding instructions of the CBDT. Consequently, the assessee's cross-objection was dismissed as infructuous.

What were the facts?

The Department appealed an order of the CIT(A) for AY 2006-07. The assessee pointed out that the tax effect in the appeal was below Rs. 10 lakhs, which is the monetary limit set by CBDT Circular No. 21/2015 for filing appeals.

What were the issues?

Whether the Department's appeal is maintainable before the Tribunal when the tax effect is below the monetary limit prescribed by the CBDT circular.

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

Hearing: 27.01.2016Pronounced: 28.01.2016

Assessee by : Sh. B.R.R. Kumar, Sr. DR Respondent by : Sh. Manoj Gupta, CA Date of Hearing 27.01.2016 Date of pronouncement 28.01.2016 O R D E R PER PRASHANT MAHARISHI, A. M.

1.

This appeal filed by the Department is directed against the order dated 29.11.2011 of ld CIT(A)-XIII, New Delhi for the Assessment Year 2006-07.

2.

At the outset of the hearing itself, the ld. AR brought to our attention that CBDT vide Circular No.21/2015 dated 10th December, 2015 has decided that the revenue would not prefer an appeal before the Tribunal if the tax effect is less than Rs.10 lakhs. He has also filed the computation to show that the tax effect in this case is below Rs.10 lakhs. Therefore, he pleaded that the appeal of the revenue be dismissed as per the instruction of the CBDT and also submitted that the cross objection preferred by the assessee is not pressed.

3.

Ld. DR was fair enough to admit the aforesaid factual position.

4.

We have heard both the sides on the issue and perused the material. I find that the CBDT vide circular dated 10.12.2015 has revised the monetary limit for filing the appeal by the department before Income Tax Appellate Tribunal, Hon’ble High Courts and Hon’ble Supreme Court. The relevant para of the aforesaid circular is reproduced as under :- [1]

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