What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal without going into the merits of the case. This was solely due to the tax effect being below the monetary limit prescribed by the relevant CBDT circulars.

The Revenue filed an appeal against the CIT(A)'s order deleting additions made to the assessee's income. The assessee argued for dismissal based on low tax effect as per CBDT circulars.

What were the issues?

Whether the Revenue's appeal should be dismissed on the grounds of low tax effect as per CBDT circulars.

ITO vs Credia Pune Metro | ITAT Pune 2020

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI D. KARUNAKARA RAO, AM

Hearing: 29.01.2020Pronounced: 29.01.2020

PER D. KARUNAKARA RAO, AM: This appeal is filed by the Revenue against the order of the CIT(A)-10, Pune dated 09.08.2016 for the assessment year 2012-13. 2. Before me, 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 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, I 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. 6. In the result, appeal of the Revenue is dismissed. Order pronounced in the open Court on 29th day of January, 2020. (D. KARUNAKARA RAO) लेखा सद" / ACCOUNTANT MEMBER पुणे / Pune; "दनांक Dated : 29th January, 2020. Sujeet आदेश क" "ितिलिप अ"ेिषत/Copy of the Order is forwarded to : अपीलाथ" / The Appellant;

""यथ" / The Respondent;

2.3.

The CIT(A)-10, Pune;

The CIT (Exemptions), Pune; िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, पुणे “एक-सद"य मामला” /

DR ‘SMC’, ITAT, Pune; गाड" फाईल / Guard file. 6. आदेशानुसार/ BY ORDER, स"यािपत "ित //// Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

INCOME-TAX OFFICER (EXEMPTIONS) vs. CREDIA PUNE METRO, PUNE

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