THE DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, SURAT vs. AKASH PRITHVI CORPORATION, SURAT

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ITA 1487/AHD/2016Status: DisposedITAT Surat24 September 2020AY 2012-133 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the tax effect was below the prescribed monetary limit for appeals. Therefore, the appeal was dismissed as not maintainable, with liberty to revive if exceptions apply.

What were the facts?

The Revenue appealed an order deleting a disallowance of Rs. 1,55,78,079/- under section 80IB(10). The tax effect involved was Rs. 48,13,633/-, which is below the CBDT's monetary limit for appeals.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the tax effect is below the CBDT's monetary limit for appeals.

Which sections of the Income-tax Act were involved?

Section 80IB(10)

AI-generated summary — verify with the full judgment below

PER PAWAN SINGH, JUDICIAL MEMBER:

1.

This appeal filed by the Revenue, is directed against the order of the ld. Commissioner of Income Tax (Appeals)-4, Surat [in short “the CIT(A)”] dated 11.03.2016 for the Assessment Year (AY) 2012-13. Though, the Revenue has raised as many as three grounds of appeal

, however, in our considered view the substantial ground of appeal relates to deleting the disallowance of Rs.1,55,78,079/- under section 80IB(10) of the Act.

2. At the outset of hearing, the ld. Sr. Departmental Representative (DR) fairly submitted that the tax effect involved in the present appeal is Rs. 48,13,633/- which is less than the monetary limit of Rs.50 Lakhs, as prescribed by Central Board of Direct Taxes (CBDT) in its Circular

ITA 539/AHD/2016/AY.2011-12/Ambalal Chhatrasinh Purohit No.17/2019 dated 08.08.2019, therefore, the appeal may be treated as not pressed. However, the revenue may be given liberty to file appropriate application for re-calling of the order in case, at later stage, if it is discovered that the appeal is covered by any exception clause of the CBDT Circular dated 08.08.2019.

3.

On perusal of record we find that the Ld. AR for the assessee has already filed the working of the tax effect on record vide his application dated 21.09.2020 in the following manner; Sr No. Particulars / additions Amount 1 Addition/ disallowance in assessment Rs. 1,55,78,097/- order under section 80IB(10) 2 30% tax on addition Rs. 46,97,430/- 3 Surcharge No surcharge in case of Firm in A.Y.-2012-13 4 Education cess @3% Rs.140,203/- 4 Total tax effect including Education Rs. 48,13,633/- cess @ 30.90% ( 2+4)

4.

Considering the submission of ld. Sr. DR for the Revenue, and the working furnished by Ld. AR for the assessee, we find that tax effect involved in the present appeal is of Rs. 48,13,633/-, which is admittedly less than the monetary limit of Rs.50 Lakhs fixed by CBDT Circular No.17/2019 dated 08.08.2019, therefore, the appeal of Revenue is dismissed being not maintainable. However, the Revenue is given liberty to get the appeal revived in case, if it is discovered that the tax effect involved in the appeals are more than the monetary limit or the case is covered by any exception clause of the aforesaid circular. 2

ITA 539/AHD/2016/AY.2011-12/Ambalal Chhatrasinh Purohit

5.

In the result, the appeal of the Revenue is dismissed due to low tax effect.

Order pronounced at the time of hearing of the appeal on 24/09/2020.

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