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Income Tax Appellate Tribunal - Delhi

Dcit (Ltu), New Delhi vs M/S. Nestle India Ltd.,, Gurgaon on 7 January, 2020

         IN THE INCOME TAX APPELLATE TRIBUNAL
               DELHI BENCH "E" NEW DELHI

     BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER
                         &
        SHRI O.P. KANT ACCOUNTANT MEMBER

                 I.T.A. No.4815/DEL/2016
                 Assessment Year 2007-08


Deputy Commissioner of      v.   M/s. Nestle India Ltd.,
Income Tax,                      M-Block, Nestle House,
Circle-1, LTU,                   DLF City,
New Delhi.                       Phase-II, Jacaranda Marg,
                                 Gurgaon
TAN/PAN: AAACN 0757G
(Appellant)                      (Respondent)

Appellant by:            Ms. Rakhi Vimal, Sr.D.R
Respondent by:           Shri Ajay Vohra, Adv.
Date of hearing:         07 01 2020
Date of pronouncement:   07 01 2020

                         ORDER

PER AMIT SHUKLA, J.M.:

The aforesaid appeal has been filed by the Revenue against the impugned order dated 22.06.2016 passed by Commissioner of Income Tax (Appeals)-XXII, New Delhi for the Assessment Year 2007-08.

2. At the outset, both the parties admitted that tax effect on the disputed issue raised in the Revenue's appeal is approximately Rs. 40.30 lac which is below the prescribed monetary limit of 50 lac, and therefore, in view of new CBDT Circular No.17/2019, the appeal of the Revenue is not maintainable.

3. In view of the CBDT Circular No.17/2019 dated 8th August, 2019, wherein the CBDT has further enhanced the monetary limit for filing of appeal by the Department before the Income Tax Appellate Tribunal from Rs.20 lacs to Rs.50 lacs. The said circular also make reference to the earlier Circular No.3 of 2018 dated 11.07.2018 and specially states that as a step towards further management of litigation, the Board has decided to enhance the monetary limit for filing of the appeals. This circular is not in supersession of the earlier circular but only amends the monetary limits as well as gives clarification with regard to paragraph 5 of the earlier circular. This inter alia means that all the other conditions mentioned in the earlier Circular No.3 of 2018 dated 11.07.2018 will apply mutatis mutandis including that is, it will apply to all the pending appeals.

4. Further CBDT vide clarification dated 20.08.2019 has clarified that the aforesaid circular will apply to all pending appeals. Accordingly, the appeal of the Revenue is dismissed as non maintainable as the tax effect is below Rs.50 lakhs.

5. In the result, the appeal filed by the Revenue is dismissed.

Order pronounced in the open Court on 7th January, 2020.

         Sd/-                                         Sd/-
       [O.P. KANT]                               [AMIT SHUKLA]
   ACCOUNTANT MEMBER                           JUDICIAL MEMBER
DATED: 7th January, 2020
PKK: