What did the Tribunal hold?

The Tribunal noted that the tax effect was indeed below the prescribed monetary limit. Therefore, without going into the merits of the appeal, the Tribunal dismissed the appeal filed by the Revenue.

The Revenue filed an appeal before the ITAT. The assessee submitted that the tax effect in the appeal was below Rs. 50 Lakhs, the revised monetary limit for filing appeals as per CBDT circulars.

What were the issues?

Whether the Revenue's appeal should be dismissed due to low tax effect as per CBDT circulars, irrespective of the merits of the case.

ITO vs Sanjay Atmaram Sarkate, Aurangabad | ITAT Pune 2021

Income Tax Appellate Tribunal, “A” BENCH, PUNE

Before: SHRI R.S. SYAL, VP & SHRI S.S. VISWANETHRA RAVI, JM

Hearing: 29.04.2021Pronounced: 29.04.2021

आदेश / ORDER This appeal preferred by the Revenue emanates from the order of the Ld. CIT(Appeals)-2, Aurangabad dated 11.09.2017 for the assessment year 2011-12 as per the ground of appeal on record.

2. By filing an application dated 28th April, 2021, the assessee submitted that the tax effect involved in this appeal is below Rs.50 Lakhs and therefore, the appeal of Revenue is liable to be dismissed on account of low tax effect in terms of recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)], dated 08.08.2019 read with Circular No.3 of 2018 dated 11.07.2018 revising the upward monetary limits for filing of appeals in Income Tax Cases before various Appellate Forums. The earlier CBDT Circular No.03/2019 dated 11.07.2018 fixed monetary limit for filing of appeals before the Tribunal at Rs.20 Lakhs. Such limit has been enhanced in the recent CBDT Circular dated 08.08.2019 from Rs.20 lakhs to Rs. 50 Lakhs. Thus, the tax effect on the addition is less than Rs.50 Lakhs.

3. The Ld. DR submitted that he is not sure about the tax effect involved in this appeal however, prayed for passing a conditional order to this effect.

We have perused the case record. Undisputedly, the tax effect involved in this appeal is less than the monetary limit prescribed by the recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)] dated 08-08-2019 read with Circular No.3 of 2018 dated 11.07.2018 for filing of appeals before the Tribunal by the Department. The CBDT vide circular dated 08.08.2019 (supra.) has amended Para 3 of Circular No.3 of 2018 dated 11.07.2018 thereby enhancing monetary limit of tax effect from Rs.20 Lakhs to Rs.50 Lakhs for filing appeals by the Department before the Tribunal. Thus, without going into merit of the issues raised in the appeal, in view of the CBDT Circular (supra), we dismiss the appeal filed by the Revenue.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20-08-2018.

In the result, appeal of the Revenue is dismissed.

Order pronounced on 29th day of April, 2021 Sd/- Sd/- S.S. VISWANETHRA RAVI R.S. SYAL JUDICIAL MEMBER VICE-PRESIDENT ऩुणे / Pune; ददनाांक / Dated : 29th April, 2021 SB आदेश की प्रनिलऱपप अग्रेपषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2.

The CIT(Appeals)-2, Aurangabad.

INCOME-TAX OFFICER, WARD - 2(4), AURANGABAD vs. SANJAY ATMARAM SARKATE, AURANGABAD

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