A.C.I.T.. CIR.-2, NAGPUR vs. M/S ARCONS INFRASTRUCTURE & CONSTRUCTIONS PVT. LTD., NAGPUR

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ITA 171/NAG/2015Status: DisposedITAT Nagpur16 January 2020AY 2010-113 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal solely on the grounds of low tax effect, as it fell below the monetary limit prescribed by the CBDT circulars for filing appeals. The Tribunal clarified that the Revenue could seek restoration if the appeal met exceptions outlined in the circular.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting certain additions. The assessee was not represented before the tribunal. The appeal was decided based on the available record and the Revenue's representative's submission.

What were the issues?

The primary issue was whether the appeal should be dismissed due to low tax effect, as per CBDT circulars, without delving into the merits of the additions.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned, but the decision is based on CBDT Circulars regarding tax effect.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENCH, NAGPUR

Before: SHRI D. KARUNAKARA RAO, AM & SHRI PARTHA SARATHI CHAUDHURY, JM

Hearing: 16.01.2020Pronounced: 16.01.2020

ORDER

PER D. KARUNAKARA RAO, AM:

1.

This appeal is filed by the Revenue against the order of the CIT(A)-2, Nagpur dated 25.03.2015 for the assessment year 2010-11.

2.

Before us, none to represent the assessee despite service of notice by the ITAT. Therefore, this appeal is being decided on the basis of material available on record and after hearing of the ld. DR for the Revenue.

3.

It is seen that the appeal of the Revenue is liable to be dismissed on account of low tax effect in terms of latest CBDT Circular No.17/2019 [F.No.279/Misc.142/2007-ITJ (Pt)] dated 08th August, 2019 read with Circular No.3 of 2018 dated 11.07.2018. The Revenue in its appeal raised the grounds assailing the findings of CIT(A) in deleting the additions. Thus, the tax effect on the said additions is less than Rs.50 lakhs.

4.

The ld. DR for the Revenue fairly admitted that in the present appeal by the Revenue the tax effect is less than Rs.50 lakhs. 5. Heard ld. DR for the Revenue. Undisputedly, the tax effect involved in this appeal is less than the monetary limit prescribed by the recent CBDT Circular No.17/2019 [F.No.279/Misc.142/2007-ITJ (Pt)] dated 08th August, 2019 read with Circular No.3 of 2018 dated 11.07.2018 for filing of appeals before the Tribunal by the Department. The CBDT vide circular dated 08-08- 2019 (supra) has amended Para 3 of Circular No.3 of 2018 dated 11-07-2018 thereby enhancing monetary limit of tax effect from Rs.20 Lakhs to Rs.50 Lakhs for filing of appeals by the Department before the Tribunal. Thus, without going into merit of the issues raised in the appeal, in view of the CBDT Circular (supra) the present appeal of the Revenue is dismissed on account of low tax effect. 6. Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20-08-2018.

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