What did the Tribunal hold?

The Tribunal noted that the tax effect was below the prescribed limit of Rs. 20 lacs and did not fall under any exceptions mentioned in the CBDT circular. Therefore, the appeal was deemed not maintainable.

The Revenue filed an appeal against the order of the CIT(A) for Assessment Year 2011-12. The assessee argued that the appeal should be dismissed due to low tax effect as per CBDT Circular No. 3 of 2018.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the Tribunal given the low tax effect as per the CBDT circular.

ITO vs Smt. Shardaben Vijaykumar Jain | ITAT Ahmedabad 2019

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: SHRI MAHAVIR PRASAD & SHRI AMARJIT SINGH

For Appellant: Shri Kamlesh Makwana, Sr. D.R

PER MAHAVIR PRASAD, JUDICIAL MEMBER

This appeal filed by the Revenue is directed against the order of the Ld. CIT(A)-3, Ahmedabad dated 31.07.2017 pertaining to A.Y. 2011-12.

ITA No. 2236/Ahd/2017 2 . A.Y. 2011-12 2. At the outset, the ld. Counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No. 3 of 2018 dated 11.07.2018. Ld. Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.

We have heard both the parties and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of the recent CBDT Circular No. 03/2015 in F.No.279/Misc. 142/2007-ITJ (Pt) dated 11th July 2018, vide which it has been decided by the Board that no departmental appeals should be filed before the Tribunal if the tax effect by virtue of the Commissioner of Income-tax (Appeals)’s order is below Rs. 20 lacs. The Board has provided exceptions at clause (10) of the Instructions wherein it has been provided that these instructions will not be applicable, where the Constitutional validity of the provisions of an Act/Rule is under challenge or where Board’s order, notification, instruction or circular has been held to be illegal or where Revenue Audit objection in the case has been accepted by the Department or where the addition relates to undisclosed foreign assets/bank accounts, etc. We find that the present case does not fall within the exception clause and the tax is less than Rs.20 lacs. Therefore, the present appeal is not maintainable and hence dismissed.

In the result, the appeal filed by the Revenue is dismissed. Order pronounced in Open Court on 15 - 05- 2019 Sd/- Sd/- (AMARJIT SINGH) (MAHAVIR PRASAD) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad: Dated 15 /05/2019

ITO, WARD-3(3)(5), AHMEDABAD vs. SMT. SHARDABEN VIJAYKUMAR JAIN, AHMEDABAD

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