DCIT, CENTRAL CIRCLE-1,, VADODARA vs. M/S. LOTUS ENTERPRISE, VADODARA

The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals)-12, Ahmedabad (CIT(A)’ in short), dated 28.02.2018 arising in the assessment order dated 28.12.2016 passed by the Assessing [DCIT vs. M/s. Lotus Enterprise] A.Y. 2012-13 - 2 - Officer (AO) under s. 147 r.w.s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2012-13.

The substantive ground of appeal raised by the Revenue reads as under:-

At the time of hearing, it was submitted by the Ld.AR for the assessee that the 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. It is inter alia noticed that the CBDT vide Instruction No. F. No. 279/Misc/M-93/2018-ITJ dt. 20/08/2019 has observed that Circular No.17/2019 dated 08/08/2019 relating to enhancement of monetary limits is also applicable to all pending appeals. As per aforesaid Circular read with instruction, 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.

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 [DCIT vs. M/s. Lotus Enterprise] A.Y. 2012-13 - 3 - showing inapplicability of the aforesaid CBDT Circular in any manner.

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