The case ITA No. 5300/DEL/2019 involves the appellant ACIT, Circle-2, Faridabad, contesting against the respondent Ranald Wed Offset P. Ltd., for the assessment year 2010-11. The appeal was filed on June 10, 2019, against the order of the CIT(A), Faridabad, dated March 29, 2019.
The appellant filed the appeal challenging the decision of the CIT(A) to delete certain additions made by the AO during the assessment proceedings. The additions were made on various grounds, which the CIT(A) found to be unjustified, prompting the ACIT to file this appeal.
The tribunal hearing was held on September 27, 2019, with the order pronounced on September 30, 2019. The revenue was represented by Ms. Rakhi Vimal, Sr. DR, while there was no representation for the assessee.
During the hearing, the representative for the revenue was brought to attention regarding the CBDT Circular No. 17/2019 dated August 8, 2019, which states that the revenue would not prefer any appeal before the Tribunal if the tax effect is less than Rs. 50 lakhs. The relevant paragraph of the circular is as follows:
“2. As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows:
- Before Appellate Tribunal: Rs. 50,00,000
- Before High Court: Rs. 1,00,00,000
- Before Supreme Court: Rs. 2,00,00,000
The appellant argued that the circular should apply prospectively and not to pending appeals. However, the tribunal noted that the CBDT circular explicitly applies to all pending appeals.
The appellant contended that the tax effect in the instant appeal is less than Rs. 50 lakhs, thus falling under the purview of the CBDT Circular No. 17/2019. The appellant requested that the appeal be decided according to the instructions in the circular.
The tribunal, comprising Judicial Member Shri H.S. Sidhu and Accountant Member Shri Prashant Maharishi, decided in favor of the appellant. They noted that the tax effect involved in the appeal was below Rs. 50 lakhs, making the appeal non-maintainable under the CBDT circular.
This decision underscores the significance of the CBDT Circular No. 17/2019 in managing the litigation and appeals filed by the revenue. The case of Ranald Wed Offset P. Ltd. demonstrates that appeals with a tax effect below the specified monetary limit must be withdrawn or dismissed, ensuring efficient use of judicial resources.
Case Dismissal Due to CBDT Circular: Ranald Wed Offset vs ACIT, Circle-2, Faridabad for A.Y. 2010-11
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