DCIT, CIRCLE-17(1), HYD, HYDERABAD vs. FACE BOOK ONLIE SERVICES P. LTD., HYD, HYDERABAD

At the outset, the Ld.AR submitted before us that the appeal is barred by monetary limitation since the tax effect is less than Rs.50,00,000/-. It was therefore pleaded that the appeal of the Revenue may be dismissed. The Ld..AR further submitted that if the appeal of the Revenue is dismissed, then Cross Objection of the assessee shall become infructuous.

Ld.DR could not controvert the submissions of the Ld.AR.

After hearing both sides, we find merit in the submission of the Ld.AR. On perusing the Order of the Ld.DCIT it is apparent that the addition made by the Ld.AO in the draft assessment Order is Rs.97,50,820/- and the same is deleted by the Ld.DCIT based on the directions of the Ld. Members of the DRP. Further from the circular No.17/2019 of the CBDT dated 08th August 2019 in F.NO. 279/Misc 142/2007-ITJ(Pt.) it is apparent that no appeal shall be brought up before the Tribunal by the Revenue if the tax effect is less than Rs. fifty lakhs. It is also evident from the Order of the Ld.DCIT that the tax effect in the appeal of the Revenue is less than Rs. fifty Lakhs. Therefore, we hereby dismiss the appeal of the Revenue as it is barred by monetary limitation vide the circular issued by the Revenue cited supra. We also dismiss the Cross Objection of the assessee since it has become infructuous because no demand of tax survives by virtue of our Order hereinabove.

In the result, both the appeal by the Revenue as well as the Cross Objection of the assessee are dismissed. Order pronounced in Open Court on 08th June, 2020. Sd/- Sd/- (P. MADHAVI DEVI) (A. MOHAN ALAKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 08th June, 2020. *gmv Copy forwarded to: