Climax Overseas Pvt. Ltd., Gurgaon V. ITO, New Delhi

CO 87/DEL/2019

AI Insights

The case involves an appeal by the Income Tax Officer (ITO) against Climax Overseas Pvt. Ltd., concerning an assessment for the year 2010-11. The Revenue's appeal was based on grounds that were found to involve a tax effect below the threshold of Rs. 50 lakhs, as per the updated CBDT Circular No.17/2019. Both parties acknowledged that the monetary limit for filing appeals had been raised and that the appeal did not meet the new criteria for maintainability. Consequently, the Revenue's appeal was dismissed. The assessee's Cross Objection was not pressed during the hearing, leading to its dismissal as well.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 115708 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 30-11-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 30-11-2022
• Assessment Year: misc
• Appeal Filed On: 19-01-2022
• Laws Referred To: CBDT Circular No.17/2019 dated 8th August, 2019, Notification dated 20th August, 2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : A : NEW DELHI BEFORE SHRI C.M. GARG, JUDICIAL MEMBER AND SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER ITA No.658/Del/2015 Assessment Year: 2010-11 ITO, Ward-6(2), CR Building, New Delhi. Vs Climax Overseas Pvt. Ltd., 153, Sector-3, IMT Manesar, Gurgaon. PAN: AABCC5665R (Appellant) (Respondent) CO No.87/Del/2019 (ITA No.658/Del/2015) Assessment Year: 2010-11 Climax Overseas Pvt. Ltd., 153, Sector-3, IMT Manesar, Gurgaon. PAN: AABCC5665R Vs. ITO, Ward-6(2), CR Building, New Delhi. (Cross Objector) (Respondent) Assessee by : Shri Rakesh Kumar Khiwani, CA Revenue by : Shri Kanav Bali, Sr. DR Date of Hearing : 01.12.2022 Date of Pronouncement : 01.12.2022 ORDER PER C.M. GARG, JM: The appeal filed by the Revenue and the Cross Objection filed by the assessee are directed against the order dated 10.11.2014 of the CIT(A)-VI, New Delhi, relating to assessment year 2010-11. ITA No.658/Del/2015 CO No.87/Del/2019 2 2. 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 8 th 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 20 th August, 2019 stating that the said Circular is applicable even to pending appeals, the appeal filed by the Revenue is not maintainable. 3. 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 8 th August, 2019 and the subsequent clarification dated 20 th August, 2019. 4. 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 CBDT Circular No.17/2019 dated 8 th 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 20 th 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. 5. 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. ITA No.658/Del/2015 CO No.87/Del/2019 3 CO No.87/Del/2019 6. At the time of hearing, the ld. Counsel did not press the Cross Objection filed by the assessee. Hence, the same is dismissed as ‘not pressed.’ 7. In the result, both the appeal filed by the Revenue as well as the CO filed by the assessee are dismissed. Order pronounced in the open court on 01.12.2022. Sd/- Sd/- (NARENDRA KUMAR BILLAIYA) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 01 st December, 2022 dk Copy forwarded to : 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi