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Income Tax Appellate Tribunal, AHMEDABAD BENCH ‘D’, AHMEDABAD
PER JUSTICE P P BHATT, PRESIDENT :
By way of this appeal, the Assessing Officer has challenged correctness of the order dated 28th February 2011, passed by the learned CIT(A)-III, Baroda for the assessment year 1993-94.
Grievances raised by the Assessing Officer are as follows:
“On the facts and in the circumstances of the case, the learned CIT(A) erred in sustaining the order of the erstwhile CIT(A) wherein the ld. CIT(A) had erred in law and on facts:-
(i) in partially deleting the addition of Rs.25,33,817/- on account of ‘on money’ receipts. (ii) in deleting the addition of Rs.16,48,770/- on account of unexplained cash credit.”
When this appeal was called out for hearing, learned counsel for the assessee submitted that the present appeal of the Revenue needs to be ITO Vs. Madhav Organisors Pvt Ltd AY : 1993-94 Page 2 of 3 dismissed on account of low tax effect in view of the CBDT Circular No. 17 of 2019 dated 08.08.2019 whereby the monetary limits for filing the appeal by the Revenue before the Tribunal was enhanced from Rs.20 lakhs to Rs.50 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed as non-maintainable as held by this Tribunal in the case of ITO Vs. Dinesh Madhavlal Patel in for AY 1998-99 vide a consolidated order dated 14.08.2019.
The learned Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.
We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of applicable legal position. As learned counsel rightly contends, this appeal of the Revenue is no longer maintainable in view of the CBDT Circular No. 17 of 2019 dated 08.08.2019. The mandatory limit for cases in which Revenue can challenge the relief granted by the CIT(A) now stands enhanced to Rs.50 lakhs. This concession granted by the Central Board of Direct Taxes (CBDT) is retrospective in effect inasmuch as it applies to all pending appeals as well. In view of the above position, the appeal of the Revenue is no longer maintainable and is dismissed as such.
It is, however, made clear that on re-verification at the end of the Assessing Officer if it comes out that the tax effect of more than Rs.50 lakhs is being involved in the appeal or the appeal falls within the exemption clause of the Circular, then the Revenue will be at liberty to file Miscellaneous Application to recall the Tribunal order. The application should be filed within time limit prescribed in the Act.
In the result, appeal of the Revenue is dismissed due to low tax effect. Pronounced in the open court today on the 30th January, 2020.