Dismissal of the appeal of the revenue on account of low tax effect case

The Income Tax Appellate Tribunal has dismissed an appeal filed by the Revenue. This decision was made because the tax effect involved in the case was below the threshold set by the Central Board of Direct Taxes (CBDT) in their Circular No. 17/2019. The Tribunal found that the circular and its subsequent clarification, which apply retrospectively, were binding on tax authorities, leading to the dismissal without considering the case's merits.

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: ‘D’ NEW DELHI

BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER
AND
MS SUCHITRA KAMBLE, JUDICIAL MEMBER

I.T.A. No. 3393/DEL/2017 (A.Y 2011-12)
(THROUGH VIDEO CONFERENCING

DCIT,
Central Circle – 25,
New Delhi.
(APPELLANT)

Vs

Smt. Jyoti Goel
E-270, Shastri Nagar,
New Delhi- 110052
(AIAPG0204E)
(RESPONDENT)

Appellant by Ms. Aashna Paul, CIT-D.R.
Respondent by None

Date of Hearing 05.01.2021
Date of Pronouncement 05.01.2021

ORDER

PER SUCHITRA KAMBLE, JM

This appeal is filed by the Revenue against the order of the Commissioner of Income Tax [Appeals]-29, New Delhi dated 20.02.2017 for Assessment Year 2011-12.

2. At the outset, it was brought to our notice that the tax effect involved inthis appeal being less than Rs. 50 lacs, squarely falls within the ambit of Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes prescribing the tax effect for preferring appeals before Tribunal by the revenue and subsequent clarification issued by CBDT on 20th August, 2019.

3. After perusing the materials available on record, 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 tribunalby the revenue. On perusal of the Circular No. 17/2019 dated 08.08.2019 andthe materials available on record, Ld. Sr. DR could not point out as to how andwhy 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 revisedmonetary limits shall apply retrospectively to pending appeals also. TheCircular is binding on the tax authorities. Hence, we hold that the appeal of therevenue 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 dismissed this appeal of revenue in limine, without going into the merits of the case.

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