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Income Tax Appellate Tribunal, AHMEDABAD BENCH ‘D’, AHMEDABAD
By way of this appeal, the Assessing Officer has challenged correctness of the order dated 02.03.2016, passed by the learned CIT(A), Ahmedabad for the assessment year 2011-12. The assessee has also filed its Cross Objection.
Grievances raised by the Assessing Officer in its appeal are as follows:
“1. The Ld. CIT(A) has erred on facts and in law in deleting the addition of Rs.92,55,027/- made by rejecting the book results and estimating profit @ 12% of the total turnover inspite of the fact that the AO has pointed out various specific instances showing that the sales reported by the assessee as well as expenses booked are unreliable and not correct.
2. On the facts and in the circumstances of the case, the Ld. CIT(A)ought to have upheld the addition made by the A.O.
3. It is therefore, prayed that the order of the Ld. CIT(A) may be set aside and the order of the Assessing Officer be restored.
When this appeal was called out for hearing, learned counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No. 17 of 2019 dated 08.08.2019 whereby the monetary limits for filing the appeal by the Revenue before the Tribunal was enhanced from Rs.20 lakhs to Rs.50 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed as non-maintainable as held by this Tribunal in the case of ITO Vs. Dinesh Madhavlal Patel in for AY 1998-99 vide a consolidated order dated 14.08.2019.
The learned Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.
We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of applicable legal position. As learned counsel rightly contends, this appeal of the Revenue is no longer maintainable in view of the recent CBDT Circular No. 17 of 2019 dated 08.08.2019. The mandatory limit for cases in which Revenue can challenge the relief granted by the CIT(A) now stands enhanced to Rs.50 lakhs. This concession granted by the Central Board of Direct Taxes (CBDT) is retrospective in effect inasmuch as it applies to all pending appeals as well. In view of the above position, the appeal of the Revenue is no longer maintainable and must be dismissed as such.
CO No.114/Ahd/2016 Assessment Year : 2011-12 Page 3 of 3
It is, however, made clear that on re-verification at the end of the Assessing Officer it comes out that the tax effect of more than Rs.50 lakhs is being involved in the appeal or the appeal falls within the exemption clause of the Circular, then the Revenue will be at liberty to file Miscellaneous Application to recall the Tribunal order. The application should be filed within time limit prescribed in the Act.
In the result, appeal of the Revenue is dismissed due to low tax effect.
Coming to the Cross Objection filed by the assessee, as the Cross Objection filed by the assessee merely supports the order of the learned CIT(A), the Cross objection is thus dismissed as infructuous.
In the result, appeal filed by the Revenue and Cross Objection filed by the assessee, both are dismissed. Pronounced in the open court today on the 27th September, 2019.