ITO, WARD-1(2)(5), AHMEDABAD vs. PRAVINKUMAR HIRALAL VORA- HUF, AHMEDABAD

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ITA 1961/AHD/2017Status: DisposedITAT Ahmedabad06 August 2019AY 2012-133 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 as per CBDT Circular No. 3 of 2018, appeals with a tax effect below Rs. 20 lacs are to be dismissed. The Revenue's appeal was therefore dismissed in limine.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2012-13. The tax effect in the appeal was less than Rs. 20 lacs.

What were the issues?

The primary issue was the applicability of CBDT Circular No. 3 of 2018 regarding monetary limits for filing appeals before the ITAT.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED&

For Appellant: Shri N. D. Gupta, Sr. D.R
For Respondent: Shri Hitesh P. Shah, A.R
Hearing: 01.08.2019

The instant appeal filed by the revenue is directed against the order dated 30.06.2017 passed by the Commissioner of Income Tax (Appeals)-10, Ahmedabad arising out of the order dated 20.12.2016 passed by the Income Tax Officer, Ward-1(2)(5), Ahmedabad under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred as to “the Act”) for the Assessment Year 2012-13.

2.

At the time of the hearing, we observe that the tax effect in the appeal filed by the Revenue is less than Rs. 20 lacs. As per the Circular No. 3 of 2018 dated 11/07/2018 issued by CBDT recently all pending appeals filed by ITO vs. Pravin H. Vora HUF Asst.Year –2012-13 - 2 - Revenue are liable to be dismissed/ withdrawn/ not pressed to reduce the litigation where the tax effect does not exceed the prescribed monetary limit, i.e., Rs.20 Lacs. The relevant extract of the circular is reproduced below: “2. In supersession of the above Circular, it has been decided by the Board that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified below.

3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:

S. Appeals/ SLPs in Income-tax matters Monetary Limit No. (Rs.) 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1,00,00,000 The monetary limit for filing the appeals by the Revenue before the Tribunal has been increased to Rs. 20 Lacs. It is also clarified in the said Circular that the said monetary limit is applicable retrospectively even to the appeals pending before the Tribunal. The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.20 lacs may be withdrawn / not pressed.

In the case on hand, it was noticed that the tax effect on the disputed issue raised by the Revenue is claimed to be less Rs.20 Lacs. Therefore appeal of the Revenue is required to be dismissed in limine in terms of the above circular.

3.

The Ld. DR for the Revenue fairly agreed on the applicability of the CBDT Circular No. 3 of 2018. Accordingly, the appeal of the Revenue is dismissed as not maintainable. However, the Revenue is on the liberty to ITO vs. Pravin H. Vora HUF Asst.Year –2012-13 - 3 - move the miscellaneous application to recall the order if the tax effect exceeds the threshold limit or the case of the Revenue falls in any of the exception provided in the aforesaid CBDT Circular in any manner. The MA shall be filed within the prescribed time. Hence the appeal of the Revenue is dismissed.

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