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Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Shri Rajpal Yadav & Shri Amarjit Singh
आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-
These two revenue’s appeals for A.Y. 2009-10 & 2010-11, arise from order of the CIT(A)-1, Baroda dated 11-12-2012 & 24-12-2013, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.
& 751/Ahd/2014 A.Y. 2009-10 & 2010-11 Page No 2 DCIT vs. M/s. Gujarat Industrial Power Co. Ltd.
At the outset, after going through the grounds of appeals and the impugned orders of the Revenue authorities below, a query was raised by the Bench as to applicability and maintainability of the appeals filed by the Revenue in view of recent CBDT Circular No. 17/2019 dated 08-08-2019 restricting the filling of the appeals 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 appeals of the Revenue are presented on 7.3.2013 & 13.3.2014. 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 & 751/Ahd/2014 A.Y. 2009-10 & 2010-11 Page No 3 DCIT vs. M/s. Gujarat Industrial Power Co. Ltd. within the time period prescribed in the Act. In view of the above, both the appeals of the Revenue are dismissed due to low tax effect.
In the result, both the appeals of the Revenue are dismissed.