THE DCIT, CIRCLE-4(1)(1), AHMEDABAD vs. SHRI GAURAV SANTRAMDAS VERMA, AHMEDABAD

These four appeals by the Revenue, in respect of different assessees, are directed against the separate orders passed by the learned CIT(A)-3, Ahmedabad in the matter of assessment under Section 144 of the Income-tax Act, 1961 for the assessment years 2012-13 (except for wherein the assessment year is 2008-09). The Cross-Objection bearing CO No.49/Ahd/2017 is presented at the instance of assessee in appeal of the Revenue, i.e. ITA No. 230/Ahd/2017 for Assessment Year 2008-09.

When these appeals were called out for hearing, learned counsel for the assessee submitted that the appeals of the Revenue need 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. The learned counsel for the assessee also placed on record a tabular sheet exhibiting the working of tax effect involved in each appeal. Therefore, the present appeals of the Revenue are 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 these appeals of the revenue 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, these appeals of the Revenue are 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 appeals filed by the Revenue are 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 any of 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, appeals of the Revenue are dismissed due to low tax effect.

Coming to the Cross Objection filed by the assessee vide CO No.49/Ahd/2017 in as the Cross Objection filed by the assessee merely supports the order of the learned CIT(A), the Cross objection is thus dismissed as infructuous.

In the result, appeals filed by the Revenue as well as the Cross Objection filed by the assessee are dismissed. Pronounced in the open court today on the 3rd October, 2019.