INCOME TAX OFFICER(EXEMPTIONS), CUTTACK, CUTTACK vs. BLOCK VOLUNTARY ORGANIZATION FOR IMPROVEMENT OF CULTURE AND ECO ENVIRONMENT, CUTTACK

Shri Natabar Panda, Natabar Panda, ld AR appeared for the assessee. Shri S.C.Mohanty, ld Sr DR , ld Sr DR represented on behalf of the revenue. represented on behalf of the revenue.

When this matter was taken up for adjudication, the learned counsel for the assessee brought to the notice of this Bench to the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the Tribunal in cases where the tax effect does not exceed Rs.50,00,000/- (Rupees fifty lakhs). It is also submitted that the tax effect in this appeal is Rs.4,49,698/-, which is less than the threshold limit.

In reply, the ld. DR did not dispute applicability of the recent CBDT circular and also tax effect being below Rs.50 lakhs in the assessee's case. He, however, left the issue to the Tribunal to pass appropriate order in the matter.

I have considered the rival submissions and perused the CBDT Instruction. I am of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is Rs. 4,49,698/-, which is less than Rs.50 lakhs, and therefore, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, I am of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed.

In the result, appeal of the Revenue is dismissed due to low tax effect.