DEPUTY COMMISSIONER OF INCOME-TAX, GHAZIABAD vs. LUCKY TEX INTERNATIONAL, GHAZIABAD

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ITA 2076/DEL/2015Status: DisposedITAT Delhi21 December 2015AY 2010-112 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 CBDT circular dated 10.12.2015, which revised the monetary limit for filing appeals, is binding on the Department. Since the tax effect was below Rs. 10 lakhs, the appeal was not maintainable.

What were the facts?

The Department filed an appeal before the ITAT. The assessee pointed out that the tax effect in the case was below Rs. 10 lakhs, and the CBDT circular instructed not to file appeals below this threshold. The Department's counsel admitted this factual position.

What were the issues?

Whether the Department's appeal is maintainable before the ITAT 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 “SMC-1”: NEW DELHI

Before: SHRI VIJAY PAL RAO

For Appellant: Dr. Anjula Jain, Sr. DR
Hearing: 14.12.2015Pronounced: 21.12.2015

O R D E R This is an appeal filed by the Department is directed against the order dated 30.12.2014 of ld. CIT(A)-Ghaziabad for the Assessment Year 2010-11.

2.

At the outset of the hearing itself, the ld. AR brought to my 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.

I 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 :-

Page No. 2 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

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