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Income Tax Appellate Tribunal, AHMEDABAD BENCH ‘C’, AHMEDABAD
By way of this appeal, the Assessing Officer has challenged correctness of the order dated 30th November 2010, passed by the learned CIT(A)-XIV, Ahmedabad for the assessment year 2007-08.
Grievances raised by the Assessing Officer are as follows:
“1. The Ld.CIT(A) has erred in law and on facts in directing the A.O. to delete addition made on account of rejection of claim of depreciation amounting to Rs.58,12,951/-in respect of Plant & Machinery purchased under sale and lease back transaction with Rajasthan state Electricity Board.
2. The Ld. CIT(A) has erred in law and on facts in directing the A.O. to delete addition made on account of partial rejection of claim of depreciation amounting to Rs.2241/- in respect of Motor buses leased to AMTS.
LTA No. 283/Ahd/2011 DCIT Vs. The Sandesh Ltd Assessment Year : 2007-08 Page 2 of 3 3. The Ld. CIT(A) has erred in law and on facts in holding that Rule 8D is applicable from A.Y.2008-09 and thereby deleting addition made u/s 14A amounting to Rs.9,53,995/-.
4. The Ld.CIT(A) has erred in law and on facts in deleting addition of Rs.6,97,153/- made on account of computer software expenses, even though the software programme was customized resulting into-enduring benefit to the assessee.
5. On the facts and in the circumstances of the case and in law, the CIT(A)ought to have upheld the order of the A.O.
6. It is, therefore, prayed that the order of the CIT (A) be set aside and that of the A.O. be restored to the above extent.”
When this appeal was called out for hearing, learned counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No. 17 of 2019 dated 08.08.2019 whereby the monetary limits for filing the appeal by the Revenue before the Tribunal was enhanced from Rs.20 lakhs to Rs.50 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed as non-maintainable as held by this Tribunal in the case of ITO Vs. Dinesh Madhavlal Patel in for AY 1998-99 vide a consolidated order dated 14.08.2019.
The learned Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.
We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of applicable legal position. As learned counsel rightly contends, this appeal of the Revenue is no longer maintainable in view of the recent CBDT Circular No. 17 of 2019 dated 08.08.2019. The mandatory limit for cases in which Revenue can challenge the relief granted by the CIT(A) now stands enhanced to Rs.50 lakhs. This concession granted by the Central Board of Direct Taxes (CBDT) is retrospective in effect inasmuch as it applies to all pending appeals as well. In view of the above position, the appeal of the Revenue is no longer maintainable and must be dismissed as such.
It is, however, made clear that on re-verification at the end of the Assessing Officer it comes out that the tax effect of more than Rs.50 lakhs is being involved in the appeal or the appeal falls within the exemption clause of the Circular, then the LTA No. 283/Ahd/2011 DCIT Vs. The Sandesh Ltd Assessment Year : 2007-08 Page 3 of 3 Revenue will be at liberty to file Miscellaneous Application to recall the Tribunal order. The application should be filed within time limit prescribed in the Act.
In the result, appeal of the Revenue is dismissed due to low tax effect. Pronounced in the open court today on the 27th August, 2019.