THE ITO, CORP WADR-2(1), KOCHI, KOCHI vs. M/S.SOUGANDHIKA FARM PRODUCTS P. LTD, ADIMALI

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ITA 552/COCH/2018Status: DisposedITAT Cochin20 August 2019AY 2015-163 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that as per CBDT Circular No. 17/2019, appeals with a tax effect below Rs. 50 lakh should not be filed before the ITAT. Therefore, the appeal was dismissed as not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT for the assessment year 2015-2016. The tax effect in the appeal was less than Rs. 50 lakh.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the low tax effect, in light of CBDT Circular No. 17/2019.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Chandra Poojari, AM & Shri George George K, JM

Hearing: 20.08.2018Pronounced: 20.08.2019

Per George George K, JM

This appeal at the instance of the Revenue is directed against the Commissioner of Income-tax (Appeals)’s order dated 24.09.2018. The relevant assessment year is 2015- 2016

2.

It is observed that the tax effect in the appeal filed by the Revenue is less than Rs.50 lakh, and therefore, the Circular No. 17/2019 dated 8th August, 2019, issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under Sec. 268A of the I.T. Act comes into play, wherein, the monetary limit for filing the appeal(s) by the Revenue before the ITAT and various High Courts as well as Apex Court are

ITA No.552/Coch/2018 2 M/s.Sougandhika Farm Products Pvt.Ltd. revised with an object of reducing the tax litigation. Vide para 2 of the said circular (supra), it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 50 lakh, appeal should not be filed. Thus, taking a note of CBDT Circular No. 17/2019 dated 8th August, 2019 and considering the fact that the tax effect in the instant appeal is less than Rs.50 lakh, the present appeal deserves to be dismissed, as not maintainable. However, we make it clear that the issue(s) raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so, advised.

3.

Accordingly in the light of CBDT Circular No.17/2019 dated 08th August, 2019, the appeal stands dismissed.

4.

In the result, the appeal filed by the Revenue is dismissed.

Order pronounced on this 20th day of August, 2019.

Sd/- Sd/- (Chandra Poojari) (George George K) ACCOUNTANT MEMBER JUDICIAL MEMBER

Cochin ; Dated : 20th August, 2019. Devdas*

ITA No.552/Coch/2018 3 M/s.Sougandhika Farm Products Pvt.Ltd.

Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The Pr.CIT, Kochi. 4. The CIT(Appeals)-II, Kochi. 5. DR, ITAT, Cochin 6. Guard file.

BY ORDER,

(Asstt. Registrar) ITAT, Cochin

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