THE ACIT, KOCHI vs. M/S.AMALGAM FOODS & BEVERAGES P. LTD, KOCHI

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ITA 592/COCH/2019Status: DisposedITAT Cochin07 January 2020AY 2003-044 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 condoned the delay in filing the appeal. However, based on CBDT Circular No. 17/2019, which sets a monetary limit for appeals, the appeal was dismissed as not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT with a delay of three days, citing staff engagement in search operations. The tax effect in the appeal was less than Rs. 50 lakhs.

What were the issues?

Whether the Revenue's appeal should be admitted despite a delay and if it is maintainable given the low tax effect as per CBDT circular.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

For Respondent: Shri Mritunjaya Sharma. Sr. DR
Hearing: 07/01/2020Pronounced: 07/01/2020

This appeal filed by the assessee is directed against the order of CIT(A)-I, Kochi dated 18/07/2019 and pertains to the assessment year 2003-04.

2.

At the time of hearing, none appeared on behalf of the assessee nor any adjournment application was filed before the Tribunal. However, we proceed to dispose of the appeal after hearing the Ld. DR.

3.

There was a delay of three days in filing the appeal by the Revenue before the Tribunal. Ld. DR has filed condonation petition accompanied by affidavit stating that the order of the CIT(A)-I, Kochi was received by the Pr. CIT, Kochi-1 on 22/08/2019 and the last date of filing the appeal was 21/10/2019. The Ld. DR submitted that the since the staff was engaged in a large scale search operation, the filing of the appeal was inadvertently missed out. Therefore, in the circumstances, it was prayed that the delay of three days in filing the appeal may be condoned and appeal may be taken on files.

4.

We have gone through the condonation petition explaining the reasons for the delay in filing the appeal. We find there is good and sufficient cause for filing the appeal belatedly before the Tribunal. Accordingly, we condone the delay of three days in filing the appeal and admit the appeal for adjudication.

5.

On merits, we have heard the Ld. DR. It is observed that the tax effect in the appeal filed by the Revenue is less than Rs.50 lakhs, 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 u/s. 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 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 lakhs, 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 lakhs, 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 fall in any of the exceptions referred to in the above said Circular, the Revenue is at liberty to move an application for recalling the order, if so, advised.

5.1 Accordingly in the light of CBDT Circular No. 17/2019 dated 08/08/2019, the appeal filed by the Revenue stands dismissed.

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