What did the Tribunal hold?

The Tribunal agreed that the tax effect was below the prescribed monetary limit. Therefore, the appeal filed by the Revenue was not admitted and was dismissed.

The Revenue filed an appeal against the order of the CIT(A) for AY 2012-13. The assessee argued that the appeal was not maintainable as the tax effect was below the monetary limit prescribed by CBDT circulars.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal due to the tax effect being below the prescribed monetary limit as per CBDT circulars.

ITO vs Shri Rameshbhai Devchandbhai Patel | ITAT Surat 2021

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: SHRI PAWAN SINGH & Dr. ARJUN LAL SAINI

Hearing: 15.04.2021

िनधा�रतीकीओर से /Assessee by Shri Tinish Mody – CA राज�कीओर से /Revenue by Ms. Usha Shorte – Sr. DR सुनवाई की तारीख/ Date of hearing: 15.04.2021 उद्घोषणा की तारीख/Pronouncement on: 15.04.2021 आदेश /O R D E R PER PAWAN SINGH, JUDICIAL MEMEBER:

1. 1. This appeal by Revenue is directed against the order of ld. Commissioner of Income Tax (Appeals)-1, Surat, hereinafter referred as “Ld.CIT(A)”, passed under section 143(3) of the I.T.Act (hereinafter called ‘the Act’) dated 23.05.2017 for assessment year (AY) 2012-13.

2. This appeal comes up hearing on 15.04.2021. Shri Tinish Mody -CA / learned Authorised Representative (ld.AR) appeared on behalf of the assessee. The ld. AR for the assessee submits that the appeal filed by the Revenue is not maintainable since the tax effect involved in the impugned appeal does not exceed monetary limit i.e. Rs.50 lakhs (AY 2012-13 Rameshbhai Devchandbhai Patel specified vide CBDT Circular No.17/2019 dated 08.08.2019 for filing appeal by revenue before Tribunal. The ld AR for the assessee submits that he has already furnished the working of tax effect involved in the present appeal, which is of Rs.47,68,907/-, which is below Rs.50 lakhs. Therefore, the appeal filed by Revenue is not maintainable due to low tax effect.

3. This fact was confronted with the Ld. Senior Departmental Representative (Sr.DR) for the Revenue. The Sr. DR for Revenue fairly agreed that the tax effect in this appeal is below the monetary limit of Rs.50 lakhs as per CBDT circular no.17/2019. However, the Sr.DR for the Revenue prayed that the Revenue may be given liberty to get the appeal revived, if at later stage it is discovered that the appeal is covered by exception clause of existing instructions of CBDT.

4. We have considered the contention of both the representative and perused the order of Ld.CIT(A) carefully. Considering the fact that tax effect involved in the present appeal is Rs.47,68,907/-, which is admittedly less than the monetary limit of tax fixed by CBDT in its Circular No.17/2019 dated 08.08.2019 for filing appeal before Tribunal, therefore, the appeal of revenue is not admitted and dismissed due to low tax effect. However, the Revenue is given liberty to get the appeal revived, if at the letter stage it is discovered that the case is covered by any exception clause of the said circular. 2 (AY 2012-13 Rameshbhai Devchandbhai Patel

In the result, appeal of the Revenue is dismissed as not maintainable. Order pronounced on 15th April 2021 at the time of hearing in Virtual Court.

INCOME TAX OFFICER WARD 2(3)(5), SURAT vs. SHRI RAMESHBHAI DEVCHANDBHAI PATEL, SURAT

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