DCIT, CC-2(3), MUMBAI vs. M/S. AAREY DRUGS PHARMACEUTICALS LTD., THANE

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ITA 1419/MUM/2023Status: DisposedITAT Mumbai07 July 2023AY 2007-083 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 dismissed the Revenue's appeal based on the CBDT Circular No. 17/2019, which stipulates that no appeal should be filed if the tax effect is below Rs. 50 lakhs. This circular is also applicable to pending cases.

What were the facts?

The Revenue filed an appeal against an order passed by the CIT(A). During the hearing, it was noted that the tax effect in the appeal was below Rs. 50 lakhs.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal due to low tax effect as per CBDT guidelines.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH MUMBAI

Hearing: 06/07/2023

आदेश / ORDER PER PAVAN KUMAR GADALE - JM:

1.

The revenue has filed an appeal against the order passed by the Commissioner of Income Tax (Appeals)- 46, passed u/s 250 of the Act.

2.

At the time of hearing, it was brought to the knowledge of Bench, that the tax effect in the appeal is below Rs. 50

M/s Aarey Drugs Pharmaceuticals Ltd. lakhs and is covered by the CBDT Circular No. 17/2019 dated 08.08.2019. The Ld. DR has accepted the low tax effect aspects and applicability of CBDT Circular. We find as per the CBDT Circular dated 08.08.2019, no appeal shall be filed by the revenue before the Hon’ble Tribunal where the tax effect is below Rs. 50 lakhs. Further the circular of the CBDT is also applicable to the pending cases. Accordingly, we dismiss the revenue appeal on maintainability and low tax effect.

3.

In case, if the revenue is able to provide evidence that the case falls under any of the exceptions provided in the circular issued by the CBDT. The revenue may prefer miscellaneous application for recalling of this order, if they so desire, in which circumstances, this order shall be recalled by the Hon’ble Tribunal.

4.

In the result, the appeal filed by the revenue is dismissed.

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