THE ITO, WARD-6(1)(3), AHMEDABAD vs. SHRI NARESH RAMSINHBHAI THAKOR, AHMEDABAD

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ITA 209/AHD/2017Status: DisposedITAT Ahmedabad23 September 2019AY 2007-082 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 held that the appeal falls within the purview of the CBDT circular due to the low tax effect. Therefore, the appeal was dismissed.

What were the facts?

The Revenue appealed against the deletion of an addition made by the AO under Section 68. The assessee argued that the tax effect was below Rs. 50 lakhs, making the appeal non-maintainable as per CBDT Circular No. 17 of 2019.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal given the tax effect below the threshold specified in CBDT Circular No. 17 of 2019.

Which sections of the Income-tax Act were involved?

Section 68,Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD - BENCH ‘D’

Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGHShri Naresh Ramsinhbhai Thakor

Hearing: 23/09/2019Pronounced: 23/09/2019

PER RAJPAL YADAV, JUDICIAL MEMBER: Revenue is in appeal before the Tribunal against order of ld.CIT(A)- 6, Ahmedabad dated 28.11.2016 passed for the assessment year 2007-08.

2.

The Revenue is aggrieved by the action of the Id.CIT(A) in deleting addition made by the AO under section 68 of the Act.

3.

The Id.counsel for the assessee at the outset submitted that disputed addition in the present appeal is Rs.67,46,000/-, and therefore, Tax effect on the same is than Rs.50 lakhs. She filed a copy of demand notice exhibiting demand of Rs.43,96,060/- being tax requires to be paid along with interest. She submitted that by virtue of recent CBDT Circular No.17 of 2019 dated 8.8.2019, Department has been instructed not to file appeal before the Tribunal where tax effect is below Rs.50 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed at the threshold. The Id.DR, however,

1.

2 did not dispute applicability of the recent CBDT circular and left to the Tribunal to pass appropriate order in the matter.

4.

After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is more than Rs.50 lakhs, and therefore, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is dismissed.

However, it is observed that in case on re-verification at the end of the AO it can be demonstrated 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 view of the above, the appeal of the Revenue is dismissed due to low tax effect.

5.

In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Court on 23rd September, 2019 at Ahmedabad.

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