DCIT, New Delhi V. BPTP Resorts Pvt. Ltd., New Delhi

MA 288/DEL/2019

AI Insights

The case revolves around a Miscellaneous Application by the Revenue seeking rectification of an earlier Tribunal order which dismissed their appeal due to the low tax effect, as per the CBDT Circular No. 03/2018. The Revenue contended that the Tribunal should have examined the merits of the case irrespective of the tax effect. However, the Assessee argued that the Tribunal correctly applied the CBDT circular in dismissing the appeal. The Tribunal, after considering the submissions, found no grounds to interfere with the original decision, noting that the Revenue failed to demonstrate any exceptional circumstances that would justify revisiting the case despite the low tax effect.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302609 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 19-01-2023
• Assessment Year: 2006-2007
• Appeal Filed On: 07-04-2019
• Laws Referred To: CBDT Circular No. 03/2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AJAY BHAGWANI
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”: NEW DELHI BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER MA No. 288/Del/2019 (In ITA No. 509/Del/2015) Asstt. Year: 2006-07 O R D E R PER ASTHA CHANDRA, JM: In the captioned Miscellaneous Application, the Revenue has sought rectification of the order of the Tribunal in ITA No. 509/Del/2015 dated 09.11.2018 on the ground that the appeal of the Revenue has been erroneously dismissed on account of low tax effect following CBDT Circular No. 03/2018 dated 11.07.2018. 2. The Ld. DR conceded to the fact that the tax effect involved in the present appeal is below the prescribed monetary limits of Rs.20 lakhs as per the said CBDT circular. He however, contended that the Tribunal ought to have examined the issue involved on merits regardless of tax effect. DCIT, Central Circle- 32, New Delhi. Vs. BPTP Resorts Pvt. Ltd. M-11, Middle Circle, Connaught Circus, New Delhi – 110 001 PAN AAACR5360H (Appellant) (Respondent) Department by: Shri Kanav Bali, Sr. DR Assessee by : Shri Ajay Bhagwani, CA Date of Hearing 20/01/2023 Date of pronouncement 27/01/2023 MA No. 288/Del/2019 2 3. The Ld. AR on the other hand submitted that the CBDT circular no. 3/2018 dated 11.07.2018 was invoked by the Tribunal to dismiss the appeal of the Revenue on the ground that tax effect is below the monetary limit of Rs. 20 lakhs and the case of the assessee does not fall under any exception clause as mandated by the board in this regard. He therefore, submitted that there is no error in the order of the Tribunal far less the error of apparent nature. 4. We have perused the Miscellaneous Application and considered the rival submissions. It is a matter of fact that the tax effect involved is less than Rs. 20 lacs. We also observed that the Department could not demonstrate either before us or before the Tribunal in the present appeal as to how assessee’s case falls under the exception clause, to be contested notwithstanding the low tax effect which fact has categorically been recorded by the Tribunal in the impugned order. We thus see no reason to interfere with the order of the Tribunal in ITA No. 509/Del/2015 dated 09.11.2018. 5. In the result, the Miscellaneous Application filed by the Revenue is dismissed. Order pronounced in the open court on 27 th January, 2023 sd/- sd/- (ANIL CHATURVEDI) (ASTHA CHANDRA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 27/01/2023 Veena Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi MA No. 288/Del/2019 3 Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk 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