ACIT, NAINITAL vs. M/S EC GREENS RESORTS PVT. LTD., NAINITAL

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ITA 4962/DEL/2012Status: DisposedITAT Delhi21 January 2016AY 2009-103 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 Department's appeals were not maintainable because the tax effect was below the monetary limit prescribed by the CBDT circular. Consequently, the assessee's cross-objections were dismissed as infructuous.

What were the facts?

The Department filed appeals against the CIT(A) orders for assessment years 2008-09 to 2011-12. The assessee pointed out that the tax effect in these appeals was below Rs. 10 lakhs, as per a CBDT circular.

What were the issues?

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

Which sections of the Income-tax Act were involved?

Not specified

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: Ms. Susan George, Sr. DR
Hearing: 14.01.2016Pronounced: 21.01.2016

Heard together (2 matters)

ITA No. 6141/Del/2014
ITA No. 5579/Del/2013

Read from the judgment's own cause title. This page is filed under one of them.

O R D E R PER PRASHANT MAHARISHI, A. M.

1.

These appeals filed by the Department are directed against the order dated 02.07.2012, 25.08.2014 and 23.07.2013 of ld CIT(A)-II, Dehradun for the Assessment Year 2008-09 to 2011-12.

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 [1] 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 :- “3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder :-

Sl.No. Appeals in Income-tax matters Monetary Limit(in Rs.) 1. Before Appellate Tribunal 10,00,000 2. Before High Court 20,00,000 3. Before Supreme Court 25,00,000 It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.”

5.

We find that the tax effect involves in the appeal of the Revenue is below Rs.10 lakhs. There is no dispute that the Board’s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present appeal in view of the aforesaid instruction sicne the tax effect in the instant appeal is less than the amount of Rs.10 lakhs. 5.1 In view of the above, Circular No.21 dated 10.12.2015 will apply to all pending appeals. Therefore the precedent, it is held that the appeal is not maintainable in the instant case as the tax effect is less than Rs.10 lakhs. Accordingly, it is held that appeal filed by the revenue is not maintainable. Since the appeal of the revenue is not maintainable on account of low tax effect, therefore, the cross objection of the assessee becomes infractuous and accordingly dismissed.

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