INCOME TAX OFFICER, AMRITSAR vs. M/S. VIVEK PRINTS, AMRITSAR

Vide CBDT Circular dated 8th August 2019, the Income Tax Department has announced its policy decision not to file, or press, the appeals, before this Tribunal, against the appellate orders favourable to the assessee in the cases in which overall tax effect, including surcharge but excluding interest, is Rs. 50,00,000 or less. This monetary limit, which was Rs. 20,00,000 till 7th August 2019, has been in effect enhanced by almost 2.5 times over the last year, and the relief is retrospective in nature inasmuch as it not only applies to future appeals but also to the pending appeals.

As a step towards management of litigation, the CBDT has decided to further enhance the monetary limits for filing the appeals in income tax cases vide para 3 and Para 5 of the aforesaid circular to remove the agony of uncertainty to the taxpayers who have been successful before the lower appellate authorities.

The assessee has submitted tax calculated chart which is as under:

The Ld. DR has no objection to decide the appeal in tax effect.

We make it clear that the appellants shall be at liberty to point out wrong computation of tax effect being covered by the permissible exceptions, or for any other reason, and accordingly we will take appropriate remedial steps in this regard.

In the light of the above discussions, and in the light of the CBDT Circular dated 8th August 2019, this appeal, being involving tax effect of less than Rs 50 lakhs, is dismissed as well as C.O. of the assessee is also dismissed as infructuous.

With the above observations, the appeal filed by the Revenue and C.O. of the Assessee are stand dismissed.