THE ITO, WARD-9(4), AHMEDABAD vs. SHRI RAKESHBHAI GOVINDBHAI PATEL, AHMEDABAD

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ITA 1846/AHD/2013Status: DisposedITAT Ahmedabad11 September 2019AY 2009-103 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 was not maintainable as the tax effect was below Rs. 50 lakhs, as per CBDT Circular No. 17/2019. The circular was made applicable retrospectively to pending appeals.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for Assessment Year 2009-10. The appeal was filed after the issuance of CBDT Circular No. 17/2019.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal in light of the CBDT circular restricting appeals based on tax effect. The applicability of the circular to pending appeals was also considered.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH

Before: Shri Rajpal Yadav & Shri Amarjit Singh

For Respondent: Shri Vinod Tanwani, Sr. D.R

आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-

1.

This revenue’s appeal for A.Y. 2009-10, arises from order of the CIT(A)- XV, Ahmedabad dated 26-03-2013, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”

Page No 2 ITO vs. Shri Rakeshbhai Govindbhai Patel

2.

At the outset, after going through the grounds of appeal and the impugned orders of the Revenue authorities below, a query was raised by the Bench as to applicability and maintainability of the appeal filed by the Revenue in view of recent CBDT Circular No. 17/2019 dated 08-08-2019 restricting the filling of the appeal by the Revenue where the tax effect is below Rs.50 lakhs, the ld. DR did not dispute the same and submitted that the issue is left to the Tribunal to be decided in accordance with law.

3. We find that the appeal of the Revenue is presented on 27.6.2013. On 8.8.2019 the CBDT has issued Instructions bearing No. 17 of 2019 under file No. F. No. F. No. 279/Misc. 142/2007-ITJ(Pt.) prohibiting its subordinate authorities from filing of the appeal to the Tribunal against the order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.50 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present case, “tax effect” on the total income assessed minus the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal is filed, is less than Rs.50 lakhs. Further, the case of the Revenue does not fall within the ambit of exceptions provided in the Circular. Thus, 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 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 Page No 3 ITO vs. Shri Rakeshbhai Govindbhai Patel 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.

4.

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

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