THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-4(2), AHMEDABAD vs. M/S. VAIBHAV LAXMI CORPORATION, AHMEDABAD

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ITA 1709/AHD/2016Status: DisposedITAT Ahmedabad23 September 2019AY 2006-073 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal as not maintainable because the tax effect was below the revised monetary limit specified in CBDT Circular No. 17 of 2019. The assessee's cross-objection was not pressed and was also dismissed.

What were the facts?

The Revenue appealed against the deletion of a disallowance related to compensation received by the assessee. The assessee argued that the appeal should be dismissed due to low tax effect as per a new CBDT circular.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect in light of a recent CBDT circular.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 254

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGH

For Appellant: Shri Gulab Thakor, ARs
Hearing: 23/09/2019

Heard together (2 matters)

I.T.A. No. 1709/Ahd/2016
C.O. No. 115/Ahd/2016

Read from the judgment's own cause title. This page is filed under one of them.

आदेश/O R D E R

PER AMARJIT SINGH - AM:

1.

The appeal filed by the Revenue for A.Y. 2006-07, arise from order of the CIT(A)-5, Ahmedabad dated 22.03.2016, in proceedings under section 143(3) r.w.s. 254 of the Income Tax Act, 1961; in short “the Act”.

2.

The ground of appeal

raised by the Revenue reads as under:-

1. Whether the Ld. CIT(A) has erred in law on the facts in deleting the disallowance of Rs. 60,23,810/- out of compensation received for surrendering its rights.”

C.O. No. 115/Ahd/2016 [DCIT vs. Vaibhav Laxmi Corporation] A.Y. 2006-07 2 3. 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.

4.

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.

5.

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

Cross Objection No. 115/Ahd/2016 (A. Y. 2006-07):-

6.

The assessee has not pressed for the Cross Objection. Therefore, the Cross Objection of the assessee is dismissed.

7.

In the result, Cross Objection of the assessee is dismissed.

This Order pronounced in Open Court on 23/09/2019

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