THE DCIT, CIRCLE-1(2), AHMEDABAD vs. SHRI RAMESHBHAI KALUBHAI PARMAR, AHMEDABAD

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ITA 2163/AHD/2016Status: DisposedITAT Ahmedabad13 May 2019AY 2011-122 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Revenue's appeal should be dismissed on the grounds of low tax effect, as per CBDT instruction no. 3 of 2018. The Revenue did not dispute the applicability of this circular or any exceptions.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting an addition of Rs. 45.00 lakhs made by the AO under Section 50C. The assessee argued that the appeal should be dismissed due to low tax effect, below Rs. 20 lakhs, as per CBDT instruction.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect is below the threshold stipulated by CBDT instructions. The applicability of CBDT instructions regarding low tax effect on pending appeals.

Which sections of the Income-tax Act were involved?

Section 50C,Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGHShri Rameshbhai Kalubhai Parmar

Hearing: 13/05/2019Pronounced: 13/05/2019

PER RAJPAL YADAV, JUDICIAL MEMBER: Revenue is in appeal before the Tribunal against order of ld.CIT(A)-4, Ahmedabad dated 1.6.2016 passed for the Asstt.Year 2011-12.

2.

Only issue raised in the appeal of the Revenue is against the order of the ld.CIT(A) in deleting the addition of Rs.45.00 lakhs made by the AO under section 50C of the Income Tax Act.

3.

The ld. counsel for the assessee at the outset submitted that the appeal of the Revenue deserves to be dismissed on account of low tax effect involved in it. He submitted that the tax effect on the addition disputed by the Revenue h is below Rs.20 lakhs, and therefore, by virtue of the CBDT instruction bearing no.3 of 2018 dated 11.08.2018, the Revenue is prohibited from filing

ITA No.2163/Ahd/2016 2 such appeal before the Tribunal therefore, the present appeal is not maintainable at the threshold. The ld.DR has not disputed applicability of above circular cited by the ld.counsel for the assessee, and has not pointed out whether the case of the Revenue fall within the ambit of exceptions provided in the Circular or not. Thus, keeping in view the above CBDT circular, which is applicable to pending appeals also, and provisions of section 268A of the Income Tax Act, we are of the view that the appeal of the Revenue deserves to be dismissed. It is accordingly dismissed.

However, it is observed that in case on re-verification at the end of the AO it comes to the notice that the tax effect is more or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act.

4.

In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Court on 13th May, 2019 at Ahmedabad.

Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER

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