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2019 (9) TMI 1730 - AT - Income TaxMaintainability of appeal on low tax effect - HELD THAT - We find that the amount disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 17/2019 dated 08.08.2019 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 17/2019 dated 08.08.2019 and the materials available on record, Ld. Sr. DR could not point out as to how and why such a Circular is not applicable to the facts of the case. We find that the subsequent clarification dated 20.08.2019 makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. The Circular is binding on the tax authorities. Hence, we hold that the appeal of the revenue deserve to be dismissed on account of low tax effect vide Circular No. 17/2019 dated 08.08.2019 and subsequent clarification on 20.08.2019. Accordingly, on account of low tax effect case, we dismiss this appeal of revenue in limine, without going into the merits of the case.
Issues involved: Appeal filed by Revenue against order of Commissioner of Income Tax (Appeals) for assessment year 2011-12 based on tax effect falling below prescribed limit.
Summary: The Appellate Tribunal ITAT DELHI, comprising of Shri R.K.Panda, Accountant Member, and Ms. Suchitra Kamble, Judicial Member, heard the appeal filed by the Revenue against the order dated 27.02.2015 by the Commissioner of Income Tax (Appeals)-XXI, New Delhi for assessment year 2011-12. It was noted that the tax effect involved in the appeal was below the limit set by Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes. Despite the Senior DR's inability to demonstrate why the Circular was not applicable, the Tribunal found that the subsequent clarification dated 20.08.2019 affirmed the retrospective application of the revised monetary limits to pending appeals. Emphasizing the binding nature of the Circular on tax authorities, the Tribunal concluded that the appeal of the Revenue should be dismissed due to the low tax effect, as per Circular No. 17/2019 and subsequent clarification on 20.08.2019. Consequently, the appeal of the Revenue was dismissed without delving into the merits of the case. The order was pronounced in the open court on 25.09.2019.
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