THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3, SURAT vs. M/S. HAPPY HOME CORPORATION, SURAT

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ITA 125/SRT/2017Status: DisposedITAT Surat18 February 2021AY 2014-153 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal acknowledged that the tax effect was below the monetary limit set by the CBDT circular. Therefore, the appeal filed by the Revenue was not admitted and was dismissed.

What were the facts?

The Revenue filed an appeal against the order of the CIT(A) for Assessment Year 2014-15. The assessee contended that the appeal was not maintainable due to low tax effect, which was below the monetary limit specified by CBDT circular.

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 by the CBDT.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: SHRI PAWAN SINGH, Honble & Dr.SHRI ARJUN LAL SAINI, Honble

For Respondent: Ms. Anupama Singla – Sr.DR
Hearing: 18.02.2021

सुनवाई की तारीख/ Date of hearing: 18.02.2021 उ�घोषणा क� तार�ख/Pronouncement on: 18.02.2021 आदेश /O R D E R PER PAWAN SINGH, JUDICIAL MEMEBER: 1. This appeal by Revenue is directed against the order of ld.Commissioner of Income Tax(Appeals)-4, Surat, hereinafter referred as “Ld.CIT(A)”, passed under section 143(3) of the I.T.Act (hereinafter called ‘the Act’) dated 22.06.2017 for assessment year (AY) 2014-15.

2.

This appeal come up hearing on 18.02.2021. Ms.Chetali Shah - CA appeared on behalf of the assessee. The Authorised Representative (AR) for the assessee submits that the appeal

DCIT, Central Circle-3, Surat Vs. M/s.Happy Home Corporation/ A.Y. 2014-15 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 specified vide CBDT Circular No.17/2019 dated 08.08.2019. He further submits that the tax effect involved in the impugned appeal is of Rs.43,02,288/- (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 Ld.Sr.DR for the Revenue and the order of Ld.CIT(A) carefully. Considering the fact that tax effect involved in the present appeal is less than the monetary limit fixed by CBDT in its Circular No.17/2019 dated 08.08.2019, 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 DCIT, Central Circle-3, Surat Vs. M/s.Happy Home Corporation/ A.Y. 2014-15 discovered that the case is covered by any exception clause of the said circular.

5.

In the result, appeal of the Revenue is dismissed as not maintainable.

6.

Order pronounced on 18th February 2021 while hearing of the appeal.

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