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2018 (7) TMI 1906 - AT - Income TaxMaintainability of appeal on monetary limits - computation of tax effect - reference to Addition made under the normal provision of Income Tax Act and under MAT provision u/s 115JB - HELD THAT - Admittedly, the tax effect in this appeal is below the monetary limit of ₹ 20 lakhs. In terms of CBDT Circular No. 3/2018 dated 11th July, 2018 read with Section 268 A of the Income Tax Act, 1961, this appeal by the Revenue should have been withdrawn or should not have been pressed by the Revenue. The appeal by the Revenue is dismissed in limine.
Issues: Appeal by Revenue against CIT(A) order for assessment year 2010-11 - Computation of tax effect below monetary limit - Applicability of CBDT Circular No. 3/2018 and Section 268 A of the Income Tax Act, 1961.
The judgment pertains to an appeal filed by the Revenue against the order of the ld. CIT(A)-8, New Delhi for the assessment year 2010-11. The computation of tax effect presented by the assessee revealed additions under normal provisions and MAT provisions of the Income Tax Act. The total tax effect was below the monetary limit of ?20 lakhs. Referring to CBDT Circular No. 3/2018 and Section 268 A of the Income Tax Act, 1961, it was concluded that the appeal by the Revenue should have been withdrawn or not pressed. Consequently, the appeal by the Revenue was dismissed in limine. The order was pronounced in the Open Court on 18th July 2018. In this case, the primary issue was the computation of the tax effect in the appeal. The assessee had made additions under normal provisions and MAT provisions of the Income Tax Act, resulting in a total tax effect below ?20 lakhs. This fact was crucial in determining the course of action regarding the appeal filed by the Revenue against the CIT(A) order for the relevant assessment year. Another significant issue addressed in the judgment was the applicability of CBDT Circular No. 3/2018 dated 11th July, 2018, along with Section 268 A of the Income Tax Act, 1961. The Circular and the statutory provision were cited to support the conclusion that given the tax effect being below the prescribed monetary limit, the appeal by the Revenue should have either been withdrawn or not pressed. This legal framework played a pivotal role in the decision to dismiss the Revenue's appeal in limine. The judgment, delivered by the ITAT Delhi, emphasized the importance of adherence to the monetary limits specified for tax appeals. By referencing the CBDT Circular and the relevant section of the Income Tax Act, the Tribunal underscored the need for strict compliance with the prescribed regulations. Ultimately, the dismissal of the Revenue's appeal was grounded in the clear provisions outlined in the Circular and the statutory framework, highlighting the significance of procedural requirements in tax matters.
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