JCIT (OSD), Circle-12(2), NEW DELHI V. INTERNATIONAL HOSPITAL LTD. (before amalgamation M/s Escorts Hospital and Research Centre Ltd), NEW DELHI

ITA 4843/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8310 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 27-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘H’ : NEW DELHI) BEFORE SH. SHAMIM YAHYA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.4843/Del/2019 (Assessment Year : 2013-14) JCIT (OSD), Circle-12(2) New Delhi PAN : AAAC19792A Vs. M/s. International Hospital Ltd. (Before amalgamation known as M/s. Escorts Hospital and Research Centre Ltd.) Okhla Road, New Delhi-110025 (APPELLANT) (RESPONDENT) Revenue by Sh. Praveen Rawal, CIT(DR) Assessee by Sh. R.M.Mehta, Advocate Date of hearing: 09.06.2022 Date of Pronouncement: 12 .07.2022 ORDER PER ANUBHAV SHARMA, JM: This appeal is preferred by the Revenue against order dated 15/02/2019 passed by the Learned Commissioner of Income Tax (Appeals)- 34, New Delhi for Assessment Year 2013-14. 2. Heard. Revenue has challenged the order of Ld. CIT(A) deleting the addition made by the AO of Rs. 1,28,53,858/- which was made by the AO ITA No. 4843/Del/2019 International Hospital Ltd. 2 by disallowing excess interest expenses claimed over interest income as the assessee could not fulfil the test of commercial expectancy. 3. During the hearing it transpires that the total tax effect involved is 41,70,434/-, so the present appeal falls in the category where the tax effect involved in the case is below Rs.50 Lacs. 4. 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. 5. In such circumstances, the present appeal filed by the Revenue is not maintainable for its low tax effect. Ld DR however, submitted that the interest of Revenue be protected to the extent if the matter falls in the exceptions for contesting the low tax effect appeals. 6. Accordingly, the appeal of Revenue is dismissed barred by CBDT Circular No.17/2019 dated 08.08.2019. However, subject 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. Order pronounced in the open court on 12 th July, 2022. Sd/- Sd/- (SHAMIM YAHYA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:-12 th .07.2022 *Binita, SR.P.S* ITA No. 4843/Del/2019 International Hospital Ltd. 3 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI