THE ITO, WARD-3(1)(2), AHMEDABAD vs. M/S. PARKER MULTI COMMODITIES (I) PVT.LTD., AHMEDABAD

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ITA 134/AHD/2020Status: DisposedITAT Ahmedabad04 January 2021AY 2011-122 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 held that the appeal was liable to be dismissed at the threshold due to the low tax effect, as per the CBDT circular. The Revenue did not dispute the tax effect being below the threshold.

What were the facts?

The Revenue filed an appeal against the deletion of additions made by the Assessing Officer. The assessee contended that the tax effect of the disputed additions was below Rs. 50 lakhs, making the appeal non-maintainable as per CBDT Circular No. 17 of 2019.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect of the disputed additions is below the threshold limit prescribed by the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD – BENCH ‘C’

Before: SHRI RAJPAL YADAV, VICE- & SHRI AMARJIT SINGH

Hearing: 04/01/2021Pronounced: 04/01/2021

PER RAJPAL YADAV, VICE-PRESIDENT Present appeal is filed at the instance of the Revenue against order of ld.CIT(A)-9, Ahmedabad dated 09-12-2019 passed for the Asstt.Year 2011- 12 challenging deletion of additions by the CIT(A) as set out in the grounds of appeal.

1.

2. Before going to the merit of the cases, the ld.counsel for the assessee at the outset submitted that tax effect on the disputed total additions of Rs.1,47,07,399/- at the 33.22% is below Rs.50 lakhs, therefore, by virtue of recent CBDT Circular No.17 of 2019 dated 8.8.2019, Department has been instructed not to file appeal before the Tribunal where tax effect is below Rs.50 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed at the threshold. Per contra, the ld.DR did not dispute applicability of the recent CBDT circular and also tax

2 effect being below Rs.50 lakhs in the assessee case. He, however, left the issue to the Tribunal to pass appropriate order in the matter.

3.

After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is less than 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. 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 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. In view of the above, the appeal of the Revenue is dismissed due to low tax effect.

4.

In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Court on 4th January, 2021 at Ahmedabad.

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