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. The Tribunal also noted that the issue was covered in favour of the assessee by a previous decision in the assessee's own case.

The Revenue filed an appeal against the order of the CIT(A) for AY 2007-08. The tax effect in the appeal was below the monetary limit specified by CBDT Circular No. 21/2015.

What were the issues?

Maintainability of the Revenue's appeal based on the tax effect and the applicability of CBDT circulars. Whether the issue is covered by a previous decision in the assessee's own case.

ITO vs M/S. Sadhu Vaswani Mission, New… | ITAT Delhi 2015

Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI

Before: SHRI J. SUDHAKAR REDDY & SHRI KULDIP SINGH

ORDER

PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER

This is an appeal filed by the Revenue directed against the order of the Ld.Commissioner of Income Tax (Appeals) dated 17.9.2013 pertaining to the Assessment Year (A.Y.) 2007-08.

1.1. The tax effect in this appeal by the Revenue does not exceed the monetary limit of Rs.10 lakhs specified in Circular No.21/2015 dated 10th December,2015, F.No. 279/Misc./142/2007-ITJ(Pt.).

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/- (Ten lakhs only).

Sadhu Vaswani Mission, N.Del. 2.1. Hence we dismiss this 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.

2.2. 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 a 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, this order will be recalled and the appeal restored for fresh disposal on merits.

2.3. Even otherwise the issue in this case is covered in favour of the assessee and against the Revenue by the decision of the Delhi G Bench of this Tribunal in ITA 6356/Del/13 for the A.Y. 2008-09, in the assessee’s own case vide order dt. 11.9.2015. Hence on merits also this appeal of the revenue has to be dismissed.

In the result Revenue’s appeal is dismissed.

Order pronounced in the Open Court on 31st December, 2015.

ITO(E), NEW DELHI vs. M/S. SADHU VASWANI MISSION, NEW DELHI

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