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Income Tax Appellate Tribunal, DELHI
Before: SH. G.S.PANNU, HON’BLE & SH. ANUBHAV SHARMA
These are two appeals filed by the Revenue against the order of Ld. CIT(A) dated 13.05.2010 arising out of assessment order u/s 144 and the penalty proceedings u/s 271(1)(c) of the Income Tax Act, 1961. Earlier vide
ITA No. 3620 & Ors. 2 the order dated 27.09.2010 the appeals of Revenue were allowed exparte directing Ld. CIT(A) to call for remand report upon the evidences and consequently, the appeal deleting the penalty u/s 271(1)(c) was also allowed.
2.1 Subsequently, vide MA 392/Del/2011 in 3620/Del/2010 and MA no. 393/Del/2011 in vide order dated 05.09.2022, at the behest of assessee, the ex parte order dated 27.09.2010 was recalled and accordingly the matter got fixed today before us for hearing.
It came up before us that the addition which Revenue is contesting is of Rs. 37,82,500/- and the penalty levied was Rs. 12,44,017/-. The Tax effect of both the appeals is less than Rs. 50 lakhs.
4. The CBDT vide Circular No.17/2019 dated 08.08.2019 has revised the monetary limit for filing the appeals before the Tribunal to Rs.50 Lacs.
Further, CBDT vide letter dated 20.08.2019 has also clarified that Circular No. 17/2019 would be applicable to all pending appeals.
In such circumstances, the present appeals filed by the Revenue are not maintainable for its low tax effect. Ld DR however, submitted that the interest of Revenue be protected to the extent if the matter falls in the exceptions for contesting the low tax effect appeals.
ITA No. 3620 & Ors. 3
Accordingly, the appeals of Revenue are dismissed barred by CBDT Circular No.17/2019 dated 08.08.2019. However, subject liberty to approach the Tribunal for re-institution of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescribed in para-10 of the Circular dated 11.07.2018.
Order pronounced in the open court on 31st October, 2023.