DCIT, DEHRADUN vs. SH. RAMESH BATTA, DEHRADUN

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ITA 3964/DEL/2013Status: DisposedITAT Delhi05 January 2016AY 2005-064 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 appeals were not maintainable due to a low tax effect, as per CBDT Circular No. 21/2015. The circular mandates that appeals should not be filed if the tax effect is below Rs. 10,00,000.

What were the facts?

The Revenue filed appeals against the orders of the CIT(A) for AY 2005-06 and 2006-07. The appeals were found to have a low tax effect.

What were the issues?

Whether appeals filed by the Revenue are maintainable 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 ‘F’, NEW DELHI

Before: SHRI J. S. REDDY & SHRI KULDIP SINGH

For Appellant: Shri R. B. Meena, CIT DR
For Respondent: Shri Salil Kapoor and Sh. Sumit Adv
Hearing: 05.01.2016Pronounced: 05.01.2016

I.T.A.No. 3964 & 3965/Del/2013 (Assessment Year 2005-06 & 2006-07) DCIT, Central Circle, Vs. Shri Ramsh Batta, Dehradun 81/210, Kaulagarh Road, Dehradun GIR / PAN : (Appellant) (Respondent) Appellant by : Shri R. B. Meena, CIT DR Respondent by : Shri Salil Kapoor and Sh. Sumit Adv. Date of hearing: 05.01.2016 Date of Pronouncement: 05.01.2016 ORDER

PER KULDIP SINGH, JM:

1.

The appellant (hereinafter referred to as 'the revenue') by filing the aforesaid appeals, sought to set aside the impugned orders dated 04.03.2013 passed by Ld. CIT(A)- Dehradun qua the Assessment Years 2005-06 & 2006-07.

2.

Perusal of the aforesaid appeal filed by the Revenue apparently show that the same is having low tax effect as per CBDT Circular No.21/2015 dated 10th December 2015 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.10,00,000/- and this factual position has been fairly conceded by the 2 I.T.A.No.5439/Del/2011 Ld. D.R. The Ld. A.R. contended that the appeal of the Revenue may be dismissed in the light of CBDT Circular (supra).

3.

We have heard parties on the issue in controversy and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised and the relevant portion of the aforesaid circular is extracted as under:

"3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: S.No. Appeals in Income-tax matters Monetary Limit (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.

10.

This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn / not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed. "

4.

The contention of Ld. CIT D.R. that he needs some time to procure the report from the Assessing Officer to work out the tax effect, is not tenable because when apparently, the appeal in question is covered under CBDT Circular No.21/2015 dated 10th December 2015 (supra), the Revenue cannot import the facts within the knowledge of the Assessing

3 I.T.A.No.5439/Del/2011 Officer to further prolong the matter. However, in case any fact which is otherwise not on record, warrants the restoration of the present appeal, the revenue is at liberty to approach the Tribunal under relevant provisions of law.

5.

In view of the CBDT Circular No.21 dated 10.12.2015 having retrospective effect and what has been discussed above, we are of the considered view that the aforesaid appeal is not maintainable because of low tax effect i.e. less than Rs.10,00,000/- hence, the aforesaid appeals filed by the Revenue is hereby dismissed having been become infructuous. Order pronounced in the open court on 05th Jan., 2016 6.

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