DCIT-8(2)(1), MUMBAI vs. PUNJABI GHASITARAM HALWAI PRIVATE LIMITED, MUMBAI

This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)] dated 14/03/2023, for the Assessment Year 2011-12.

Shri Rohan Shah, appearing on behalf of the assessee submitted at the outset that appeal filed by the Revenue suffers from low tax effect in the light of CBDT Circular No. Circular No.17/2019 dated 08/08/2019. The ld. Authorized Representative of the assessee pointed that the relief granted by the CIT(A) is in respect of addition on account of bogus purchase. As per Form-36 total tax effect is Rs.0.30 lakhs only.

Shri Sunny Kachhwaha , representing the Department fairly admitted that the tax effect involved in the appeal is less thanRs.50,00,000/-.

Both sides heard. Undisputedly, the tax effect involved in the appeal is less than Rs.50,00,000/- i.e. the monetary limit specified by the CBDT vide Circular No.17/2019 dated 08/08/2019(supra) for filing of appeals by the Revenue before the Tribunal. As per Form -36 the tax effect is only Rs.30,000/-. Thus, without going into merits of the issue raised in appeal, the present appeal by the Revenue is dismissed on account of low tax effect.

Before parting, it is clarified 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 by Revenue is dismissed.