DCIT Circle-1(1), Gurgaon V. Gurcharna Kumar Sethi, Gurgaon

ITA 9302/DEL/2019

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax (DCIT), Circle-1(1), Gurgaon against Gurcharna Kumar Sethi concerning the assessment year 2012-13. The appeal and the subsequent Cross Objection arose from the order of the Commissioner of Income Tax (Appeals)-1, Gurgaon, which was against the assessment order passed by the Assessing Officer under sections 153C, 153A, and 143(3) of the Income-tax Act, 1961. The primary contention was the maintainability of the appeal due to the monetary limit set by the CBDT Circular No.17/2019, which raised the limit for filing appeals to Rs. 50 lakhs and was applicable to pending appeals.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115725 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 25-04-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 02-12-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SHREY JAIN
• Keywords: Tax effect; Tax effect
• Section: 143(3); 153A; 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : B : DELHI BEFORE SHRI C.M. GARG, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.9302/Del/2019 Assessment Year: 2012-13 DCIT, Circle-1(1), Gurgaon Vs Gurcharna Kumar Sethi, 3302, Sec-23, Gurgaon, Haryana. PAN: ACQPS7554R CO No.37/Del/2023 ITA No.9302/Del/2019 Assessment Year: 2012-13 Gurcharna Kumar Sethi, 3302, Sec-23, Gurgaon, Haryana. PAN: ACQPS7554R Vs. DCIT, Circle-1(1), Gurgaon. (Appellant) (Respondent) Assessee by : Shri Deepesh Garg, Advocate & Shri Shrey Jain, Advocate Revenue by : Shri T. James Singson, CIT, DR ITA No.9302/Del/2019 CO No.37/Del/2023 2 Date of Hearing : 26.04.2023 Date of Pronouncement : 06.06.2023 ORDER PER M. BALAGANESH, AM: The appeal in ITA No.9302/Del/2019 and the 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’). 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 ITA No.9302/Del/2019 CO No.37/Del/2023 3 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. CO No.37/Del/2023 6. 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. 7. 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 -Sd/- -Sd/- (C.M. GARG) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 06 th June, 2023. dk ITA No.9302/Del/2019 CO No.37/Del/2023 4 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi