THE ACIT, KOCHI vs. M/S.TROPICANA LIQUID STORAGE P. LTD, ERNAKULAM

At the very outset, it is observed that the tax effect in the appeal filed by the Revenue is less than Rs.50 lakh, and therefore, the Circular No. 17/2019 dated 8th August, 2019, issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under Sec. 268A of the I.T. Act comes into play, wherein, the monetary limit for filing the appeal(s) by the Revenue before the ITAT and various High Courts as well as 2 M/s.Tropicana Liquid Storage Pvt. Ltd. Apex Court are revised with an object of reducing the tax litigation. Vide para 2 of the said circular (supra), it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 50 lakh, appeal should not be filed. Thus, taking a note of CBDT Circular No. 17/2019 dated 8th August, 2019 and considering the fact that the tax effect in the instant appeal is less than Rs.50 lakh, the present appeal deserves to be dismissed, as not maintainable. However, we make it clear that the issue(s) raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal falls in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so, advised.

Accordingly in the light of CBDT Circular No.17/2019 dated 08th August, 2019, the appeal stands dismissed.

In the result, the appeal filed by the Revenue is dismissed.