THE DY. CIT, CIRCLE-3(1), VADODARA vs. M/S. HATHEE VENTURES IVORY GARDENS, VADODARA

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ITA 1482/AHD/2017Status: DisposedITAT Ahmedabad29 October 2021AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal as not maintainable, acknowledging the applicability of CBDT Circular No. 17 of 2019 regarding the monetary limit for appeals.

What were the facts?

The Revenue appealed against the CIT(A)'s order restricting profit estimation. The assessee argued that the appeal was not maintainable due to low tax effect as per CBDT Circular No. 17 of 2019.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect as per the latest CBDT circular.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED

For Appellant: Shri S. N. Soparkar, Sr. Adv
Hearing: 29/10/2021

आदेश/O R D E R

PER Ms. MADHUMITA ROY - JM:

1.

The appeal filed by the Revenue for A.Y. 2012-13, arise from order of the CIT(A)-2, Vadodara dated 29.03.2017, in proceedings under Section 143(3) of the Income Tax Act, 1961; in short “the Act”.

2.

The ground of appeal raised by the Revenue reads as under:-

“1. On the facts and in the circumstances of the case and in law, the Ld. CIT(Appeals) erred in restricting the profit to Rs. 1,19,93,500/- as against Rs. 2,65,07,865/- estimated by the A.O. 2. The Ld. CIT(A) erred in working profit @15% o sales of plot as against 20% fairly estimate by the A.O. without appreciating the fact that sale of plot fetches more profit.

[DCIT vs. M/s. Haathee Ventures] A.Y. 2012-13 2 3. The appellant craves to add to, amend or alter the above grounds as may be deemed necessary.”

3.

At the time of hearing, it was submitted by the Ld.AR for the assessee that appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

4.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

5.

In the result, the appeal of the Revenue is dismissed.

This Order pronounced in Open Court on 29/10/2021

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