THE DY.COMMISSIONER OF INCOME TAX CIRCLE-1(1)(1), AHMEDABAD vs. M/S. ASIATIC COLOUR CHEM INDUSTRIES LTD., AHMEDABAD

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ITA 1184/AHD/2016Status: DisposedITAT Ahmedabad21 December 2020AY 2010-113 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Revenue's appeal was not maintainable due to the applicability of the CBDT Circular No. 17 of 2019, which revised monetary thresholds for tax effects. The Revenue's appeal was dismissed on this ground.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order for AY 2010-11. The assessee argued that the appeal was hit by a CBDT circular regarding monetary limits for tax effect in pending appeals.

What were the issues?

Whether the Revenue's appeal is maintainable in light of the revised monetary thresholds for tax effect as per CBDT Circular No. 17 of 2019.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Chetan Agarwal, AR
Hearing: 15/12/2019Pronounced: 22/12/2020

आदेश/O R D E R

PER Ms. MADHUMITA ROY - JM:

1.

The appeal filed by the Revenue for A.Y. 2010-11, arise from order of the CIT(A)-1, Ahmedabad dated 29.02.2016, in proceedings under Section 143(3) r.w.s. 144C(3) of the Income Tax Act, 1961; in short “the Act”.

2.

The ground of appeal raised by the Revenue reads as under:-

“1. On the facts and in the circumstances of the case and in law, the CIT(A0 ought to have upheld the order of the Assessing Officer to the extent mentioned above since the assessee has failed to disclose his true income/book profit. 2. The appellant prays that the order of CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored to [DCIT vs. M/s. Asiatic Colour Chem Industries Ltd.] A.Y. 2010-11 2 the above extent. The appellant craves, to leave, to amend or alter any ground or add a new ground which may be necessary.”

3.

At the time of hearing, it was submitted by the Ld.AR for the assessee that appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

4.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

5.

In the result, the appeal of the Revenue is dismissed.

This Order pronounced in Open Court on 22/12/2020

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