What did the Tribunal hold?

The Tribunal held that the appeal filed by the Department was not maintainable due to the low tax effect, as per the CBDT circulars. Therefore, the appeal was dismissed.

The Department filed an appeal against the assessee's appeal which was dismissed by the CIT(A). The tax effect in this case was below the revised monetary limit set by the CBDT for filing appeals.

What were the issues?

The primary issue was the maintainability of the Department's appeal before the ITAT due to the tax effect being below the prescribed monetary limit.

ITO vs Shri Bhartendu Kapoor, Shimla | ITAT Chandigarh 2021

BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRIR.L NEGI, JUDICIAL MEMBER आयकर अपील सं./ITA No. 1221/Chd/2019 िनधा�रण वष� / Assessment Year : 2011-12 The Income Tax Officer, Sh Bhartendu Kapoor, बनाम Ward-1, Kapoor House, Dingu Road, Shimla Sanjauli, Shimla (H.P.) �थायीलेखासं./PAN NO: ABYPK2168E अपीलाथ�/Appellant ��यथ�/Respondent Hearing through video Conferencing िनधा�रतीक�ओरसे/Assessee by : None राज�वक�ओरसे/ Revenue by : Smt Kusum Bansal, Addl. CIT सुनवाईक�तारीख/Date of Hearing : 24.02.2021 उदघोषणाक�तारीख/Date of Pronouncement : 24.02.2021 आदेश/Order आदेश आदेश आदेश PerR.L. Negi, Judicial Member:

The assessee has filed the captioned appeal against the order dated 27.06.2019 passed by the Commissioner of Income Tax (Appeals), Shimla [for short ‘the CIT(A)], pertaining to the assessment year 2011- 12 vide which the Ld. CIT(A) has dismissed the appeal of the assessee filed against the assessment order passed u/s 143(3) of the Income Tax Act, 1961 (for short 'the Act').

None appeared on behalf of the assessee. It is noticed that this appeal filed by the Department is not maintainable in view of the recent Circular No. 17/2019 dt. 08/08/2019 issued by CBDT, wherein, the monetary limit for filing the appeals by the Department before the ITAT

2 has been increased to Rs. 50,00,000/- from Rs. 20,00,000/- as specified in the earlier circular No. 3/2018 dated 11.07.2019.

It has been further clarified by the CBDT vide F.No.

279/Misc./ITJ dated 20.08.2019 that the revised monetary limit mentioned in Circular No. 17 of 2019 is applicable to all the pending SLPs/ appeals/ cross-objections /references and that all such pending appeals within the revised limit shall be withdrawn by the Department on or before 31.10.2019.

The Ld. Departmental Representative fairly admitted that the tax effect in this case is below 50,00,000/-.

In view of the aforesaid discussion, the present appeal filed by the Department is dismissed due to low tax effect.

Order pronounced on 24.02.2021.

ITO, W-1, SHIMLA vs. SHRI BHARTENDU KAPOOR, SHIMLA

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