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Income Tax Appellate Tribunal, AHMEDABAD – BENCH ‘A’
Before: SHRI RAJPAL YADAV, VICE- & SHRI WASEEM AHMED
PER RAJPAL YADAV, VICE-PRESIDENT
This is Revenue’s appeal directed against order of the ld.CIT(A)-4, Ahmedabad dated 29.1.2019 passed for the Asstt.Year 2015-16.
In this appeal, the grievance of the Revenue is that the ld.CIT(A) has erred in deleting disallowance of additional depreciation of Rs.64,92,560/-.
At the outset, it is noticed by the Bench that in form no.36, in ground of appeal column, the Department has mentioned total tax effect on the disputed disallowance around Rs.22,06,820/-, and therefore, a query was put to the ld.DR about maintainability of appeal of the Revenue before the Tribunal in view of recent CBDT circular no.17 of 2019 prohibiting filing of appeal by the Department before the Tribunal
2 where tax effect is below Rs.50 lakhs. The ld.DR did not dispute applicability of the recent CBDT circular and left to the Tribunal to pass appropriate order in the matter.
Admittedly tax effect in the present appeal is below Rs.50 lakhs, and therefore, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed at the threshold. It is accordingly dismissed.
However, it is observed that in case on re-verification at the end of the AO it can be demonstrated that the tax effect on the disputed addition is more, or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act 5. In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Court on 23rd July, 2021 at Ahmedabad.