ACIT, Circle- 15(1), New Delhi V. Leon Realtors Pvt. Ltd., New Delhi

ITA 3266/DEL/2018

AI Insights

The case involves an appeal by the Revenue against the order of the Ld. CIT(Appeals)-5, Delhi, concerning the assessment year 2014-15. The appeal was based on a disputed addition of Rs. 41,20,845, which was below the Rs. 50 lakhs monetary limit set by the CBDT for filing appeals. The Department did not press the appeal in light of the CBDT Circular No. 17/2019, which retrospectively applies to pending appeals and stipulates that appeals should not be filed if the tax effect does not exceed Rs. 50 lakhs. The court dismissed the appeal, allowing the Revenue the option to file a miscellaneous application if the tax effect was later found to exceed the specified limit or if it fell under any exceptions of the CBDT Circular.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113325 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 27-02-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 03-05-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A

Judgement Text

I.T.A.No. 3266/Del/2018/A.Y.2014-15 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER आ.अ.स ं /.I.T.A No.3266/Del/2018 /Assessment Year:2014-15 ACIT Circle 15(1), Room No.321, C.R. Bldg., I.P. Estate, New Delhi. ब म Vs. Leon Realtors Pvt. Ltd., Unit No. 201, 1 st Floor, Empire Apartments, Sultanpur, M.G. Road, New Delhi. PAN No. AABCL4591M अ Appellant /Respondent Revenue by Ms. Sarita Kumari, CIT DR Assessee by Ms. Shivani Sanghi, AR स ु नवाईक तारीख/ Date of hearing: 28.02.2023 उ ोषणाक तारीख/Pronouncement on 28.02.2023 आदेश /O R D E R PER C.N. PRASAD, J.M. This appeal by Revenue has been directed against the order of Ld. CIT(Appeals)-5, Delhi dated 22.02.2018 for AY 2014-15. 2. The Ld. Counsel for Assessee submits that the Revenue effect in this appeal is less than Rs.50 lakhs. Referring to the grounds of appeal of the Revenue and the assessment order it is submitted that the disputed addition is only Rs.41,20,845/- on which the tax effect is less than Rs.50 lakhs. I.T.A.No. 3266/Del/2018/A.Y.2014-15 2 3. We have heard Ld. Representatives of both the parties. Admittedly, the tax effect in the Departmental appeal is less than Rs.50 lakhs. Vide Circular No. 3/18 dated 11.07.2018 issued by CBDT u/s 268A of the I.T. Act, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs. 20 lakhs. It is also directed that this Instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in the Tribunal. Pending appeals below this specified tax effect may be withdrawn/not pressed. The aforesaid circular has been amended by issuing further Circular No. 17/2019, whereby the monetary limit for filing Income-tax appeals before the Tribunal has been enhanced to Rs. 50 lakhs. Ld. DR in view of the above Board Circular did not press the Departmental appeal. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board Instruction referred to above and, therefore, the appeal of the Department is liable to be dismissed. 4. However, in the event of the Revenue finding that the tax effect in this appeal is more than Rs.50 lakhs or covered under any exceptions under CBDT Circular the Revenue is at liberty to file miscellaneous application for recall of this order. I.T.A.No. 3266/Del/2018/A.Y.2014-15 3 5. In the result, the Departmental appeal is dismissed. Order pronounced in the open court on 28.02.2023 Sd/- Sd/- (ANADEE NATH MISSHRA) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 28.02.2023 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order Assistant Registrar, ITAT: Delhi Benches-Delhi