What did the Tribunal hold?

The tribunal dismissed the appeals filed by the Revenue. This was primarily due to the low tax effect involved in the appeals, which fell below the monetary limit prescribed by the CBDT circulars.

The Revenue filed three appeals against the orders of the CIT(A) for assessment years 2007-08 and 2008-09. The assessee did not appear before the tribunal.

What were the issues?

The primary issue was whether the appeals filed by the Revenue should be dismissed on the grounds of low tax effect as per CBDT circulars.

ITO vs Shri Vijay Dangre, Nagpur | ITAT Nagpur 2020

Income Tax Appellate Tribunal, BENCH, NAGPUR

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

Hearing: 14.01.2020Pronounced: 14.01.2020

ORDER PER D. KARUNAKARA RAO, AM: There are three appeals under consideration. All the three appeals are filed by the Revenue against the separate order of the CIT(A)-III, Nagpur dated 14.08.2014 and 21.08.2014 for the assessment years 2007-08 and 2008-09 respectively. 2. Before us, none to represent the assessee despite service of notice by the ITAT. Therefore, these appeals are being decided on the basis of material available on record and after hearing of the ld. DR for the Revenue.

2 494 & 496/NAG/2014 3. It is seen that the appeals of the Revenue are 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 appeals 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.

The ld. DR for the Revenue fairly admitted that in the present appeals by the Revenue the tax effect is less than Rs.50 lakhs.

Heard ld. DR for the Revenue. Undisputedly, the tax effect involved in appeals 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 appeals, in view of the CBDT Circular (supra) the present appeals of the Revenue are dismissed on account of low tax effect.

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.

ITO WARD -4(4)NAGPUR ERSTWHILE WD-6(1), NAGPUR vs. SHRI VIJAY DANGRE, NAGPUR

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