What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was not maintainable due to the low tax effect, as per the CBDT circular. The cross-objection filed by the assessee was withdrawn and dismissed.

The Revenue filed an appeal before the Tribunal. The assessee pointed out that the tax effect was below the monetary limit set by CBDT Circular No. 17/2019 for filing appeals. The Revenue did not object to this.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect is below the monetary limit prescribed by CBDT circulars.

ACIT vs Jai Maa Bhawani Overseas Pvt. Ltd. | ITAT Delhi 2023

Income Tax Appellate Tribunal, DELHI BENCH, ‘C’: NEW DELHI

Before: SHRI SHAMIM YAHYA & SHRI YOGESH KUMAR US

For Appellant: Ms. Shilip Jain, CA

For Respondent: Mr. Waseem Arshad, CIT(DR)

Hearing: 22.06.2023Pronounced: 22.06.2023

ORDER PER SHAMIM YAHYA, AM,

This appeal by the Revenue is directed against the order of the Ld. CIT(A)-29, Delhi, dated 24.11.2021 pertaining to Assessment Year 2016-17.

At the outset, at the time of hearing, the ld. Counsel for the assessee brought to our attention that CBDT vide Circular No. 17/2019 dated 08th August 2019 has decided that the revenue would not prefer any appeal before the Tribunal if the tax effect is less than Rs. 50 lakhs. Therefore, he pleaded that the appeal of the revenue be decided as per the Instruction of the CBDT.

The Ld. CIT-DR did not object the above proposition.

Upon careful consideration, we find that 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 appeal filed by the Revenue in case of low tax effect is not maintainable.

Before parting, we clarify here that the Revenue shall be at 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.

In conclusion, by applying the CBDT Circular dated 08.08.2019 and letter dated 20.08.2019 (supra), the captioned appeal of the Revenue is dismissed.

Cross Objection No.20/Del/2023

The ld. Counsel for the assessee pleaded to withdraw the cross objection and we permit the same.

In the result, appeal of the Revenue stands dismissed and Cross Objection of the assessee is also dismissed.

Order pronounced in the open court on 22nd June, 2023.

ACIT, CC-26, DELHI vs. JAI MAA BHAWANI OVERSEAS PVT. LTD., DELHI

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