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Income Tax Appellate Tribunal, SURAT BENCH, SURAT
Before: SHRI PAWAN SINGH, Honble & Dr.SHRI ARJUN LAL SAINI, Honble
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)”, dated 05.05.2017 for assessment year (AY) 2013-14.
2. At the outset of hearing, the ld. Authorised Representative (AR) of the assessee submits that tax effect involved in the present appeal is only of Rs.14,17,400/-, which is below the monetary limit of tax effect for filing appeal before Tribunal. The learned AR for the assessee submits that Central Board of Direct Taxes (CBDT) in its Circular No.17/2019 dated 08.08.2019, has enhanced the monetary limit to Rs. 50.00 lakhs for filing appeal ITO, Ward-1(1)(1), Surat Vs. Shri Chirag M. Ladha ./ A.Y. 2013-14 before the Tribunal. Thus, the present appeal is not maintainable and is liable to be dismissed.
3. The Ld. Senior Departmental Representative (Sr. DR) for the Revenue submits that the tax effect in the present appeal seems to be less than Rs. 50.00 Lakhs. However, the revenue may be given liberty to get the appeal revive, incase if it is discovered that the tax effect is more than Rs. 50.00 lakhs or the grounds of appeal raised by the Revenue is covered by any exception clause of CBDT circular dated 20.08.2018.
4. We have considered the contentions of both the parties and perused the orders of Assessing Officer and order passed by Ld. CIT (A). We have noted that the revenue has challenged the deletion of total penalty of Rs. 14,17,400/-, which is less than the monetary limit of the Rs.50.00 lakhs prescribed by CBDT Circular No.17/2019 dated 08.08.2019 for filing appeal before the Tribunal. Hence, the revenue is precluded from filing appeal before the Tribunal if the tax effect if less than Rs. 50.00 Lakhs. Thus, the appeal filed by the Revenue is not maintainable and is dismissed. However, the Revenue is given liberty to get the appeal revive if, at a later stage it is discovered that grounds raised by the Revenue is covered by any exception clause of circular of CBDT dated 20.08.2018 or the tax effect is more than Rs. 50.00 Lakhs.
5. In the result, appeal of the Revenue is dismissed. 2 ITO, Ward-1(1)(1), Surat Vs. Shri Chirag M. Ladha ./ A.Y. 2013-14 Order pronounced on 29th April 2021 while hearing the appeal.