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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA
PER RAJPAL YADAV, JUDICIAL MEMBER: Revenue is in appeal before the Tribunal against order of ld.CIT(A)-2, Ahmedabad dated 5.10.2017 passed for the Asstt.Year 2012-13.
None appeared on behalf of the assessee. Notice of hearing was sent to the assessee at the address mentioned in Form No.36. However, the same was returned by the postal authorities with the remark “not known”. Therefore, we proceed to dispose of this appeal ex parte qua assessee-respondent.
Revenue has raised four grounds in appeal. However, sole issue involved in all these is that the ld.CIT(A) has erred in deleting disallowance of Rs.6,44,464/- with the aid of section 40(a)(ia) of the Income Tax Act for non-compliance of section 194A/194C on the payment of interest paid to certain parties.
We have gone through orders of the Revenue authorities. When we noticed from the order that quantum of disputed amount is Rs.6,44,464/- and
ITA No.146/Ahd/2018 2 the tax effect thereon would be less than Rs.20 lakhs, we put a query to the ld.DR as the applicability of recent Instruction No.3 of 2018 dated 11.8.2018 of the CBDT, by which the CBDT has prohibited the Revenue in filing appeal before the Tribunal where tax effect is below Rs.20 lakhs. The ld.DR has not disputed applicability of above circular and the tax effect on the disputed amount is below Rs.20 lakhs. He has also not pointed out whether the case of the Revenue fall within the ambit of exceptions provided in the Circular or not. Thus, keeping in view the above CBDT circular, which is applicable to pending appeals also, and provisions of section 268A of the Income Tax Act, we are of the view that the appeal of the Revenue deserves to be dismissed. It is accordingly dismissed.
However, it is observed that in case on re-verification at the end of the AO it comes to the notice that the tax effect is more or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act.
In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Court on 30th July, 2019 at Ahmedabad.
Sd/- Sd/- (PRADIP KUMAR KEDIA) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER
Ahmedabad; Dated 30/07/2019