ITO, UTTRAKHAND vs. SHRI SUNDER LAL SEMWAL, UTTRAKHAND

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ITA 6378/DEL/2013Status: DisposedITAT Delhi07 December 2015AY 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 as per CBDT Instruction No. 3/2011, appeals with a tax effect below Rs. 3 lakhs should not be preferred by the revenue. Therefore, the revenue's appeal was dismissed.

What were the facts?

The revenue filed an appeal against the deletion of an addition of Rs. 9,56,465. The tax effect of this appeal was admittedly below Rs. 3 lakhs.

What were the issues?

The primary issue was whether the revenue's appeal was maintainable given that the tax effect was below the prescribed monetary limit for appeals set by the CBDT.

AI-generated summary — verify with the full judgment below

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

Before: SHRI J.S. REDDY & SHRI CHANDRAMOHAN GARG

For Appellant: Shri Ashis Mohanty, Sr. DR

Appellant by: Shri Ashis Mohanty, Sr. DR Respondent by: Shri Gautam Jain, Adv. O R D E R PER C.M. GARG, J.M.

This appeal of the revenue for assessment year 2009-10 has been preferred by the revenue against the order of CIT(A)-I, Dehradun dated 27.09.2013. The only dispute in this appeal is against deletion of addition of Rs. 9,56,465/-, the tax effect on which is admittedly below Rs. 3 lakhs.

2.

The learned counsel for the assessee, at the outset, contends that as per Central Board of Direct Taxes, Instruction No.3/2011 dated 09th February, 2011, the revised limit for preferring revenue’s appeals has been Assessment Year: 2009-10 increased from Rs.2 lacs to Rs. 3 lacs, although the tax effect in the present revenue’s appeal is below the prescribed limit of Rs. 3 lacs. In view thereof, the revenue’s appeal may be dismissed as the tax effect being below the prescribed limit.

3.

The learned Departmental Representative agrees to the tax calculation and the upward revision of tax effect appealable under revenue’s appeal to Rs. 3 lacs.

4.

We have heard both sides. The CBDT, vide above instruction has clearly laid down that the revenue should not prefer appeals against assessees before ITAT if the tax effect involved in the appeal, excluding interest, is less than Rs. 3 lacs. The tax payable in the present appeal being below Rs. 3 lacs, the revenue’s appeal is dismissed as not maintainable in view of CBDT Instruction.

5.

In the result, the appeal of the Revenue is dismissed.

Order pronounced in the open court on 7.12.2015.

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