THE DCIT(OSD)CIRCLE-9,, AHMEDABAD vs. M/S. SORATH BUILDERS,, AHMEDABAD

As far as the appeal of the assessee is concerned, the learned Counsel for the assessee made a statement at the Bar that the assessee does not want to pursue its appeal; therefore, it is dismissed as not pressed.

As far as the appeal of the Revenue is concerned, it has taken four grounds of appeal, out of which ground nos. 3 & 4 are general in nature. In & 1882/Ahd./2014 Assessee : Sorath Builders AY : 2010-11 2 ground nos. 1 & 2, the Revenue has pleaded that learned CIT(A) has erred in deleting the addition of Rs.10,50,000/-, which was added by the Assessing Officer on account of unsecured loan, and in deleting the addition of Rs.76,32,720/- out of total addition of Rs.92,82,225/-. A perusal of the grounds of appeal would indicate that the tax effect by virtue of relief given by the learned CIT(A) on both these issues is less than Rs.50 lakhs. Therefore, the present 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 filed by the Revenue is no longer maintainable and is 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 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 assessee and Revenue, both are dismissed.