DCIT CIRCLE-1(1), GURGAON vs. GURCHARNA KUMAR SETHI, GURGAON

The appeal in Cross Objection in CO No.37/Del/2023 for AY 2012-13, arise out of the order of the Commissioner of Income Tax (Appeals)-1, Gurgaon, [hereinafter referred to as ‘ld. CIT(A)’, in short] in Appeal No.624/18-19, A.Y. 2012-13 dated 20.09.2019 against the order of assessment passed u/s 153C r.w.s. 153A r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 22.12.2018 by the Assessing Officer, Circle-1(1), Gurgaon (hereinafter referred to as ‘ld. AO’).

The ld. counsel for the assessee, at the outset, submitted that the tax effect involved in the grounds raised by the Revenue is below Rs.50 lakhs. Therefore, in view of the recent CBDT Circular No.17/2019 dated 8th August, 2019, raising the monetary limit for filing of the appeal by the Revenue before the Tribunal to Rs.50 lakhs and the subsequent clarification of the CBDT, vide Notification dated 20th August, 2019 stating that the said Circular is applicable even to pending appeals, the appeal filed by the Revenue is not maintainable.

The ld. DR, on the other hand, fairly conceded that the tax effect involved in the grounds raised by the Revenue being below Rs.50 lakhs, the appeal filed by the Revenue squarely falls within the ambit of the recent CBDT Circular No.17/2019 dated 8th August, 2019 and the subsequent clarification dated 20th August, 2019.

After hearing both the sides, we find the tax effect involved in the grounds raised by the Revenue is admittedly below Rs.50 lakhs. Therefore, in view of the CO No.37/Del/2023 CBDT Circular No.17/2019 dated 8th August, 2019 raising the monetary limit for filing of the appeals by the Revenue before the Tribunal to Rs.50 lakhs and the subsequent clarification dated 20th August, 2019 to the effect that the said Circular is applicable even to pending appeals, the appeal filed by the Revenue is not maintainable. Accordingly, the same is dismissed.

However, if the Revenue at any point of time finds that the tax effect involved in the grounds of the Revenue is more than Rs.50 lakhs or that the same is falling under the exceptions provided in the said Circular, the Revenue may move necessary application for recall of this order.

In view of the dismissal of the appeal of the Revenue due to low tax effect, the Cross Objection filed by the assessee is hereby dismissed as infructuous.

In the result, the appeal of the Revenue is dismissed and the Cross Objection of the assessee is dismissed as infructuous. Order pronounced in the open court on 06.06.2023