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Income Tax Appellate Tribunal, DELHI BENCH : FRIDAY : NEW DELHI
Before: SHRI R.K. PANDA & MS SUCHITRA KAMBLE
ORDER
PER R.K. PANDA, AM:
The Revenue, through this Miscellaneous Application, requests the Tribunal to recall the order passed by it dismissing the appeal filed by the Revenue on account of low tax effect.
The ld. DR, referring to the contents of the Misc. Application, drew the attention of the bench to the same which reads as under:-
The Hon’ble ITAT vide order dated 29/12/2015 in After considering the submissions of learned DR, the facts of the case and the Circular of the CBDT, we are of the opinion that there is no necessity for adjourning the appeal and calling the report from the Assessing Officer because, apparently, the tax effect involved in the present appeal of the Revenue is below 10 lakhs. However, we may clarify that if on receipt of this order, the Assessing Officer finds that the tax effect is above Rs. 10 lakhs or in any manner, the circular is not applicable in view of the exceptions culled out in the circular, he will be at liberty to file miscellaneous application for recalling of this order which the Tribunal will consider in accordance with law....
2. In this regard it is submitted that appeal before Hon’ble ITAT was filed on the ground of deletion of addition of Rs. 99,90,321/- by the ld. CIT(A). Apparently the tax effect on deletion of this addition will be more than Rs.10 lakhs.
3. As the tax effect in this case is above Rs.10 lac and hence the same does’nt fall within the ambit of circular no. 21/2015 of CBDT. Therefore, the undersigned requests your honor to restore the appeal in the case of M/s Garg Industries for A.Y. 2010-11 and an intimation of having restored the appeal before Hon’ble ITAT may be sent to this office. It is also prayed that the Hon’ble ITAT may pass a appropriate order in view of the actual tax effect is above Rs.10 lac on merits, as it may deem fit.
4. The appellant craves to add to, amend or alter the above grounds as may deemed necessary.”
He accordingly submitted that since the tax effect involved in the grounds raised by the Revenue is more than Rs.10 lakhs, therefore, the Tribunal was not justified in dismissing the appeal on account of low tax effect by relying on the CBDT Circular No.21/2015 dated 10.12.2015.
The ld. Counsel for the assessee, on the other hand, while conceding the contents of the MA, however, submitted that in view of the recent CBDT Circular No.17/2019 dated 8th August, 2019 raising the monetary limit to Rs.50 lakhs which is applicable even to pending appeals, therefore, the appeal filed by the revenue is to be dismissed.
We have considered the rival arguments made by both the sides and perused the record. Admittedly, the tax effect involved in the grounds raised by the revenue is more than Rs.10 lakhs. Therefore, the CBDT Circular No.21/2015 was wrongly applied by the Tribunal for which an error has crept in the order of the Tribunal which calls for a rectification in the order of the Tribunal. We, therefore, recall the order passed by the Tribunal in 29.12.2015 for fresh adjudication.
In the result, the Misc. Application filed by the revenue is allowed.
After hearing both the sides, we find, the tax effect involved in the grounds raised by the Revenue is below Rs.50 lakhs. Therefore, in view of the CBDT Circular No.17/2019 dated 8th August, 2019 raising the monetary limits for filing of the appeals by the Revenue before the Tribunal to Rs.50 lakhs and the subsequent clarification dated 20th August, 2019 to the effect that the said Circular is applicable even to pending appeals, the appeal filed by the Revenue is not maintainable. Accordingly, the same is dismissed.
In the result, the appeal filed by the Revenue is dismissed.
In the result, the MA filed by the Revenue is allowed and the appeal filed by the Revenue is dismissed. The decision was pronounced in the open court on 13.03.2020.