Assessment Year: 2014-15
Appellant: ACIT, Circle-26(1), New Delhi
Respondent: VG Properties Pvt. Ltd., New Delhi
Case Filed On: 24th May 2019
Date of Order: 3rd November 2022
Order Type: Final Tribunal Order
Pronounced On: 3rd November 2022
The appeal in ITA No. 4734/DEL/2019 was filed by the Assistant Commissioner of Income Tax (ACIT), Circle-26(1), New Delhi against the order of the Learned Commissioner of Income Tax (Appeals)-9, New Delhi for the assessment year 2014-15. The primary contention in this appeal was regarding the treatment of receipts and deductions claimed by VG Properties Pvt. Ltd. (the respondent).
The grounds taken by the appellant in this appeal were as follows:
During the appellate proceedings, the assessee submitted a computation of the tax effect, which was found to be less than Rs. 50,00,000. The details are as follows:
1. Income assessed vide order dated 28.11.2016: Rs. 1,89,00,000/- 2. Income declared after claiming relief of Rs. 30,21,185/- u/s 80ID: Rs. 36,35,166/- 3. Balance Net Addition under challenge: Rs. 1,53,64,834/- - Basic Tax @ 30%: Rs. 46,09,450/- - Add Surcharge @ 2%: Rs. 92,289/- - Total: Rs. 47,01,636/- - Add Education Cess @ 3%: Rs. 1,41,049/- - Grand Total: Rs. 48,42,688/-
During the hearing, both the Authorized Representative (Ld. AR) for the assessee and the Senior Departmental Representatives (Ld. Sr. DR) agreed that since the tax effect was below Rs. 50,00,000, the appeal was not maintainable as per the CBDT Circular No. 17/2019 dated 08/08/2019 and earlier CBDT Circular No. 3 of 2018 dated 11/07/2018. The CBDT Circulars had revised the minimum threshold limit for filing appeals by Revenue in ITAT to Rs. 50,00,000. A subsequent clarification by CBDT also applied this revised limit to pending appeals.
Given this, the appeal was dismissed as not pressed and not maintainable according to the aforementioned circulars.
The Revenue was granted the liberty to approach the Income Tax Appellate Tribunal under Section 254(2) of the Income Tax Act, 1961, to seek recall of this order and for restoration of the appeal if it was found that the appeal was not covered by the CBDT Circulars.
The appeal was dismissed by the Income Tax Appellate Tribunal on 3rd November 2022. The order was pronounced orally on 2nd November 2022 and the written order was signed on 3rd November 2022.
Members:
Shri Challa Nagendra Prasad, Judicial Member
Shri Anadee Nath Misshra, Accountant Member
Dated: 3rd November 2022
Copy forwarded to:
Assistant Registrar, ITAT New Delhi
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