ITO, WARD-1(2), TIRUPATHI, TIRUPATHI vs. GANGALAPUDI SREENIVASULU REDDY, TIRUPATHI, HYDERABAD

We notice at the outset the Revenue’s instant appeal involves tax effect of Rs.9,69,680 only going by the CIT(A)’s order. There is further no change therein so far as the Revenue’s grounds pleaded before us are concerned.

Learned department representative pointed out at this stage that the tribunal's earlier order dt.2.2.2018 had dismissed the instant deparmental appeal on account of involving lower than Rs.10 lakhs tax effect which stood recalled on 1.10.2018 on the ground that it was an instance of revenue audit party (RAP) objections duly taken as an exception in the CBDT corresponding circular No.21/2015 dt.10.12.2015. We observe in this factual backdrop that it was only the Assessing Officer’s original assessment framed on 17.12.2011 which involves the foregoing Revenue’s audit objection than the instant second round assessment dt.31.3.2014 framed in light of the CIT/PCIT’s section 263 revision directions dt.21.12.2012. We therefore conclude that the Revenue’s instant appeal involves tax effect of Rs.50 lakhs as per the latest CBDT circular dated

This Revenue’s appeal is dismissed as involving lower than prescribed tax effect in above terms.