What did the Tribunal hold?

The Tribunal noted that the Revenue's appeal was subject to the revised monetary limits set by CBDT Circular No. 17 of 2019. As the tax effect did not exceed the prescribed limit, the appeal was dismissed.

The Revenue appealed against the deletion of an addition made on account of the difference in sale consideration for a plot of land. The assessee argued that the appeal was hit by a CBDT circular revising monetary limits for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable in light of the revised monetary limits prescribed by CBDT circulars for filing appeals.

DCIT vs Shri Chintan G Shah, Vadodara | ITAT Ahmedabad 2019

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: JUSTICE SHRI P. P. BHATT & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Alok Singh, CIT.D.R, Smt. Urvashi Shodhan, A.R

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

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 14.09.2017 arising in the assessment order dated 28.08.2015 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2014-15.

The grounds of appeal raised by the Revenue read as under:-

“1. On the facts and circumstances of the case and in law, the Ld.CIT(A), Ahmedabad has erred in deleting the addition of Rs.1,23,24,721/- made on account of difference of sale consideration based on the Tax Deducted at Source u/s 194IA in the case of plot of land at Hanumanpura, R.S.No. 48/1 for share of assessee as Long Term Capital Gain.

2. On the facts and circumstances of the case and in law, the Ld. CIT(A), Ahmedabad has failed to appreciate the fact that the addition was made by the AO after due verification of the purchase deed and sale deed agreement.”

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 showing inapplicability of the aforesaid CBDT Circular in any manner.

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

This Order pronounced in Open Court on 05/09/2019

Sd/- Sd/- (JUSTICE P. P. BHATT) (PRADIP KUMAR KEDIA) PRESIDENT ACCOUNTANT MEMBER Ahmedabad: Dated 05/09/2019 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।

DCIT, CENTRAL CIRCLE-3, VADODARA vs. SHRI CHINTAN G SHAH, VADODARA

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