THE DCIT, CIRCLE-1(2),, VADODARA vs. M/S. LAXMI ENTERPRISE,, BARODA

This Miscellaneous Application is filed by the Revenue against the order passed in Sr.No.54 of and 125 Others] for Assessment Year 2009-10, order dated 31/07/2018. The Revenue has submitted that tax effect in this case was of Rs.21,26,295/- was above the prescribed limit for filing an appeal as per Board Circular No.03/2018 dated 11/07/2018 and requested to decide the appeal on merit.

We find merit in the miscellaneous application of the Revenue, therefore looking to the tax effect the ITAT order is recalled.

After discussion with the Ld.DR, the recalled matter is adjudicated as underneath. At the outset, the issues raised by the Revenue on merit, it was noticed that the limit for filing the appeal by the Revenue was enhanced by the CBDT in its Circular bearing No.17 of 2019 dated 08/08/2019 from Rs.20 lakhs to Rs.50 lakhs which is applicable on the pending appeals.

From the above Circular, there is no ambiguity that the appeal filed by the Revenue involving tax effect of Rs.50 lakhs is not maintainable. In the case on hand, the tax effect is below Rs.50 Lakhs only. Therefore, the impugned appeal filed by the Revenue is not maintainable.

Before parting, we are inclined to make it clear that Revenue is at liberty to move an application for recalling the order if the case of the Revenue falls in the exception as provided in the CBDT Circular bearing No.3 of 2018.