THE ITO, WARD-3(1),, JAMNAGAR vs. SHRI MOHANLAL K. JAIN,, JAMNAGAR

The ground of appeal raised by the Revenue reads as under:-

“1. The Ld. CIT(A)has erred in law as well on facts in adopting the GP @3.5% as against the GP taken by the AO @32.35%. 2. On the basis of the facts and circumstances of the case, the learned CIT(A) ought to have upheld the order of the Assessing Officer. 3. That the revenue craves leaves to add, amend, alter or withdraw any ground of appeal.

At the time of hearing, it was submitted by the Ld.AR for the assessee that appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

In the result, the appeal of the Revenue is dismissed.