DEPUTY COMMISSIONER OF INCOME-TAX vs. M/S. S V S CHEMICAL CORPORATION, PUNE

ITA 1496/PUN/2016Status: DisposedITAT Pune26 February 2020AY 2010-116 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 dismissed the appeals filed by the Revenue. This was based on the prevailing CBDT circulars which set a monetary limit for filing appeals before the Tribunal, and the tax effect in these cases fell below that limit.

What were the facts?

The Revenue filed appeals before the ITAT against the orders of the CIT(Appeals) for assessment years 2009-10 and 2010-11. The tax effect involved in these appeals was below the monetary limit prescribed by the CBDT for filing appeals.

What were the issues?

Whether the Revenue's appeals should be dismissed due to low tax effect, as per CBDT circulars, even without examining the merits of the case.

Which sections of the Income-tax Act were involved?

CBDT Circular No.17/2019, Circular No.3 of 2018

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, PUNE

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

For Appellant: Shri Prateek Jha

For Respondent: Shri S.P Walimbe

Hearing: 25.02.2020Pronounced: 26.02.2020

आदेश / ORDER

PER PARTHA SARATHI CHAUDHURY, JM :

These two appeals preferred by the Revenue emanates from the order of the Ld.CIT(Appeals)-2, Pune dated 01.02.2016 for the assessment years 2009-10 & 2010-11 as per the grounds of appeal on record.

At the very outset, the Ld. DR submitted that the tax effect involved in these two appeals are Rs.13,55,014/- and Rs.19,20,095/- and therefore, the appeals of Revenue are liable to be dismissed on account of low tax effect in terms of recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)], dated 08.08.2019 read with Circular No.3 of 2018 dated 11.07.2018 revising the upward monetary limits for filing of appeals in Income Tax Cases before various Appellate Forums. The earlier CBDT Circular No.03/2019 dated 11.07.2018 fixed monetary limit for filing of appeals before the Tribunal at Rs.20 Lakhs. Such limit has been enhanced in the recent CBDT Circular dated 08.08.2019 from Rs.20 lakhs to Rs. 50 Lakhs. The Ld. DR submitted the following chart showing tax effect involved in these appeals:

The Ld. AR fairly admitted that in the present appeals by the Department tax effect is less than Rs.50 Lakhs.

Both sides heard. Both the parties agreed to the fact that 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/Mise.142/2007-ITJ (Pt)] dated 08-08-2019 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 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), we dismiss the appeals filed by the Revenue.

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.

In the result, both appeals of the Revenue are dismissed.

Order pronounced on 26th day of February, 2020.

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