DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1(1), PUNE vs. M/S. AVAKASH HOLDINGS PVT.LTD, PUNE

ITA 2120/PUN/2017Status: DisposedITAT Pune04 March 2020AY 2014-153 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 appeal of the Revenue is dismissed on account of low tax effect, as it falls below the monetary limit prescribed by the CBDT circulars for filing appeals before the Tribunal. The Revenue is at liberty to seek restoration if exceptions apply.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting certain additions. The assessee argued for dismissal based on low tax effect as per CBDT circulars. The Revenue conceded that the tax effect was below the prescribed limit.

What were the issues?

Whether the Revenue's appeal should be dismissed due to low tax effect as per CBDT circulars, irrespective of the merits of the case.

Which sections of the Income-tax Act were involved?

Not specified

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI D. KARUNAKARA RAO & SHRI S.S. VISWANETHRA RAVI

For Respondent: Shri S.P. Walimbe, Shri Nikhil Pathak

Hearing: 04.03.2020Pronounced: 04.03.2020

आदेश / ORDER

PER D. KARUNAKARA RAO, AM:

This appeal is filed by the Revenue against the order of the CIT(A), Pune-1, dated 29.06.2017 for the assessment year 2014-15.

Before us, at the outset, ld. counsel for the assessee submitted 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 M/s. Avakash Holdings Pvt. Ltd.

Circular No.3 of 2018 dated 11.07.2018. The ld. Counsel for the assessee submitted that the Revenue in appeal raised 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 appeal by the Revenue the tax effect is less than Rs.50 lakhs.

Both sides heard. The Revenue is in appeal against the order of CIT(A) in deleting the additions. Undisputedly, the tax effect involved in 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.

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

M/s. Avakash Holdings Pvt. Ltd. prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20-08-2018.

In the result, appeal of the Revenue is dismissed.

Order pronounced in the open Court on 4th day of March, 2020.

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