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2019 (10) TMI 1604 - AT - Income TaxMaintainability of appeal on low tax effect - Unaccounted payment to different parties - HELD THAT - Tax effect in this appeal is below Rs. 50, 00, 000./-. Vide recent CBDT Circular No. 17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018 dated 11.07.2018 minimum threshold limit of tax effect of filing of appeals by Revenue in Income Tax Appellate Tribunal ( ITAT ) has been enhanced to Rs. 50, 00, 000/-. In a subsequent clarification issued by CBDT vide F.No. 279/Misc/M93/2018-ITJ dated 20/08/2019 it has been clarified by CBDT that the aforesaid revised monetary limit is also applicable to all pending appeals in ITAT. Therefore in view of the foregoing we are of the view that this appeal filed by Revenue is not maintainable. Before leaving we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act 1961 seeking recall of this order and for restoration of the appeal if it is found that this appeal of Revenue is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.
The ITAT Delhi, comprising Judicial Member Shri H.S. Sidhu and Accountant Member Shri Anadee Nath Misshra, reviewed an appeal filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-I, New Delhi, concerning the assessment year 2007-08. The appeal challenged the deletion of an addition of Rs. 1,32,15,769/- for unaccounted payments. However, the tax effect in this appeal was below the Rs. 50,00,000/- threshold set by the Central Board of Direct Taxes (CBDT) in its Circular No. 17/2019, dated 08.08.2019, which applies to all pending appeals as clarified in F.No. 279/Misc/M93/2018-ITJ, dated 20/08/2019. Consequently, the appeal was dismissed as not maintainable and not pressed by the Departmental Representative. The Tribunal clarified that the Revenue could seek recall under Section 254(2) of the Income Tax Act, 1961, if the appeal is found not covered by the mentioned CBDT Circulars. The decision was pronounced in Open Court on 01.10.2019.
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