ACIT, C-5(1), CHANDIGARH vs. M/S YGC PROJECTS LTD., CHANDIGARH

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ITA 434/CHANDI/2018Status: DisposedITAT Chandigarh11 July 2018AY 2014-152 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 Circular No. 21/2015, departmental appeals with a tax effect below Rs. 10 lacs are not maintainable. The Departmental DR stated they would not press the appeal.

What were the facts?

The appeal was filed by the Department against an order of the CIT(A) for assessment year 2014-15. The tax effect in the departmental appeal was admittedly less than Rs. 10 lacs.

What were the issues?

The primary issue was whether the departmental appeal was maintainable given the low tax effect, in light of the CBDT circular.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DIVISION BENCH ‘B’, CHANDIGARH

Before: SHRI SANJAY GARG & MS. ANNAPURNA GUPTA

For Appellant: Shri Manjit Singh, Sr.DR
For Respondent: Shri Nikhil Goyal, CA
Hearing: 10.07.2018Pronounced: 10.07.2018

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH ‘B’, CHANDIGARH

BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.434/Chd/2018 (Assessment Year : 2014-15) The A.C.I.T., Vs. M/s YGC Projects Limited, Circle 5(1), Koooothi No.39, Sector 27-A, Chandigarh. Chandigarh. PAN: AAACY2847C (Appellant) (Respondent)

Appellant by : Shri Manjit Singh, Sr.DR Respondent by : Shri Nikhil Goyal, CA Date of hearing : 10.07.2018 Date of Pronouncement : 10.07.2018

ORDER PER ANNAPURNA GUPTA, A.M. : This appeal has been preferred by the assessee against

the order of Ld. Commissioner of Income Tax (Appeals)-2,

Chandigarh dated 10.1.2018 relating to assessment year

2014-15.

2.

It is stated that in the present appeal the tax effect is

less than the prescribed limit provided by the recent CBDT

Circular.

3.

According to Circular No.21/2015 dated 10.12.2015,

the CBDT in supercession of earlier instructions has

directed that department’s appeals before ITAT shall not be

filed in cases where the tax effect does not exceed the

monetary limit of Rs.10 lacs. The tax will not include any

interest thereon. It is further clarified that if in the case of

an assessee, disputed issues arise in more than one

assessment year, appeal can be filed in respect of such

assessment year or years in which the tax effect in respect

of disputed issues exceeds the monetary limit so specified.

This instruction will apply retrospectively to pending

appeals and appeals to be filed henceforth before the

Tribunal. The pending appeals below the specified tax limit

may be withdrawn/not pressed.

4.

Admittedly, in the departmental appeal, the tax effect

is less than Rs.10 lacs, therefore, departmental appeal is

not maintainable. The learned CIT (Appeals) decided the

issue in departmental appeal on facts and the case of the

revenue would not fall in the exceptions provided in the

above circular.

5.

In view of the above, learned D.R. stated that since

departmental appeal is filed against the CBDT instructions,

therefore, he would not be pressing departmental appeal.

Therefore, the above departmental appeal is dismissed being

not pressed.

6.

In the result, the Departmental appeal is dismissed. Order pronounced in the Open Court.

Sd/- Sd/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 10th July, 2018 *Rati* Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR

Assistant Registrar, ITAT, Chandigarh

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