Addl. CIT, Special Range-7, New Delhi V. PEC Ltd., New Delhi

ITA 4556/DEL/2018

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals)-38, New Delhi, concerning the Assessment Year 2010-11. The Revenue's appeal was based on a tax demand which, upon review, was found to be below the monetary threshold of Rs. 50 lakhs set by the CBDT for filing appeals. The assessee's counsel highlighted this threshold during the proceedings, leading to the dismissal of the appeal on the grounds of low tax effect. The court referenced the CBDT Circular No.17/2019 and a precedent set by the ITAT in the case of Dinesh Madhavlal Patel to support its decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113189 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 27-03-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 17-06-2018
• Other Referred Cases: Dinesh Madhavlal Patel [TS-469-ITAT-2019(Ahd)] 2019-TIOL-1556-ITAT-AHM
• Laws Referred To: CBDT Circular No.17/2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Retrospective amendment; Tax effect

Judgement Text

I.T.A. No. 4556/Del/2018 1 IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “F” : DELHI ] BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER A N D SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER आ.अ.सं./I.T.A No. 4556/Del/2018 िनधाᭅरणवषᭅ/ Assessment Year: 2010-11 Addl. CIT, Special Range : 7, New Delhi. बनाम Vs. M/s. PEC Limited, 9 th Floor, Hansalaya, 15, Bara Khamba Road, New Delhi – 110 001. PAN No. AAACT0101G अपीलाथᱮ/ Appellant ᮧ᭜यथᱮ/ Respondent िनधाᭅᳯरतीकᳱओरसे /Assessee by : Shri Sanjay Agarwal, C. A.; राजˢकीओरसे / Department by Shri Govind Singh, Sr. D. R.; सुनवाईकᳱतारीख/ Date of hearing : 28/03/2023 उद्घोषणाकीतारीख/Pronouncement on : 28/03/2023 आदेश / O R D E R PER C. N. PRASAD, J. M. : 1. This appeal is filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-38, New Delhi I.T.A. No. 4556/Del/2018 2 [hereinafter referred to CIT (Appeals)] dated 08.01.2018 for the Assessment Year 2010-11. 2. At the time of hearing, the learned Counsel for the assessee submitted that tax effect involved in this appeal is below the prescribed limit of Rs.50 lakhs, as fixed by the CBDT and requested to dismiss the Revenue’s appeal on account of low tax effect. 3. Perusal of the aforesaid appeal filed by the Revenue apparently show that the same is having low tax effect as per CBDT Circular No.17/2019 dated 8 th August, 2019 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.50,00,000/- and this factual position has been fairly conceded by the learned Senior Departmental Representative. 4. We have heard both the parties and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised. In view of the CBDT Circular No.17/2019 dated 8 th August, 2019 having retrospective effect as coordinate Bench of the Tribunal in case of Dinesh Madhavlal Patel [TS-469-ITAT-2019(Ahd)] 2019-TIOL-1556-ITAT-AHM dated 14 th August, 2019 has already decided the issue as to the applicability of the captioned circular to the pending appeals in affirmative and what has been discussed above, we are of the considered view that the aforesaid appeal I.T.A. No. 4556/Del/2018 3 is not maintainable because of low tax effect i.e. less than Rs.50,00,000/- hence, the aforesaid appeal filed by the Revenue is hereby dismissed having been become infructuous. However, in case, the present appeal is found to be maintainable at any stage for any technical reasons, the Department shall be at liberty to seek recall of this order under relevant provisions of law. 5. In the result, the appeal filed by the Revenue, is dismissed being infructuous. Order pronounced in the open court on : 28/03/2023. Sd/- Sd/- (ANADEE NATH MISSHRA) ( C. N. PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 28/03/2023. *MEHTA* आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of Order Forwarded to:- 1. राज᭭व / Revenue 2. आवेदक / Assessee 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ- अपील / CIT (A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, DELHI / DR, ITAT, DELHI I.T.A. No. 4556/Del/2018 4 6. गाडᭅ फाइल / Guard file. By order, ASSISTANT REGISTRAR ITAT, New Delhi. Date of dictation 28.03.2023 Date on which the typed draft is placed before the dictating Member 28.03.2023 Date on which the typed draft is placed before the Other Member 28.03.2023 Date on which the approved draft comes to the Sr. PS/PS 28.03.2023 Date on which the fair order is placed before the Dictating Member for pronouncement 28.03.2023 Date on which the fair order comes back to the Sr. PS/PS 28.03.2023 Date on which the final order is uploaded on the website of ITAT 28.03.2023 Date on which the file goes to the Bench Clerk 28.03.2023 Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order