ITO, WARD- 5 (3),, NAGPUR vs. SHREE VENKATASH CASTING PVT. LTD.,, NAGPUR

Shri C.J. Thakar and Shri S.C. Thakar appearing on behalf of the assessee submitted at the outset that the appeal by Revenue is liable to be dismissed on account of low tax effect in terms of recent CBDT Circular No. 3/2018, dated 11-07-2018. The ld. Counsel for the assessee has furnished working of tax effect involved in the appeal. According to the working, tax effect is Rs.15,84,414/- including surcharge and Cess.

Shri Shri U.U. Kasar representing the Department stated that apparently in the present appeal by the Department tax effect is less than Rs.20 Lakhs.

We have heard the submissions of rival sides and have perused the material available on record. The Revenue is in appeal against the order of Commissioner of Income Tax (Appeal) in deleting the addition u/s. 40A(3) & 40(a)(ia) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) on account of payments made towards transportation charges. There are other grounds assailing findings on minor additions of shortage of stock and rate of gross profit to be applied on unaccounted sales. Prima-facie, the tax effect involved in appeal is less than the monetary limit prescribed by CBDT Circular for filing of appeals before the Tribunal by the Department. The CBDT vide Circular No. 3/2018, dated 11-07-2018 has raised the monetary limit of tax effect for filing of appeals by the Department before the Tribunal to Rs.20 lakhs. The Circular applies to the appeals to be filed by the Department in future as well as the appeals pending before the Tribunal. Without going into merit of the issues raised in the appeal, in view of the

In the result, appeal of the Revenue is dismissed.