ACIT, CIRCLE-4(2), BARODA vs. SHRI BHOOSHAN P. PATHAK, BARODA

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ITA 201/AHD/2018Status: DisposedITAT Ahmedabad24 April 2019AY 2012-133 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 appeal was not maintainable due to low tax effect, as per the CBDT circular. The circular was also applicable retrospectively to pending appeals.

What were the facts?

The Revenue filed an appeal before the ITAT against the order of the CIT(A). The appeal was filed after the issuance of a CBDT circular restricting appeals with a tax effect below Rs. 20 lakhs.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal in light of the CBDT circular restricting appeals based on tax effect.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: Shri Mahavir Prasad & Shri Amarjit Singh

For Appellant: Shri Mukund Bakshi, A.R
For Respondent: Shri Mudit Nagpal, Sr. D.R, Shri Mukund Bakshi, A.R

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri Mahavir Prasad, Judicial Member And Shri Amarjit Singh, Accountant Member ITA No. 201/Ahd/2018 Assessment Year 2012-13

The ACIT, Shri Bhooshan P. Circle-4(2), Pathak, 78-B, Baroda Vs Vishwas Colony, (Appellant) R.C. Dutt Road, Alkapuri, Baroda-390007 PAN:AIBPP9658G (Respondent)

Revenue by: Shri Mudit Nagpal, Sr. D.R. Assessee by: Shri Mukund Bakshi, A.R. Date of hearing : 11-04-2019 Date of pronouncement : 24-04-2019 आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- This revenue’s appeal for A.Y. 2012-13, arises from order of the CIT(A)-4, Vadodara dated 12-10-2017, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.

2.

At the outset, after going through the grounds of appeal and the impugned orders of the Revenue authorities below, a query was raised by the Bench as to applicability and maintainability of the appeal filed by the Revenue in view of recent CBDT Circular No.3/2018 dated 11.7.2018 restricting the filling of the appeal by the Revenue where the tax effect is below Rs.20 lakhs, the ld. DR did

I.T.A No. 201/Ahd/2018 A.Y. 2012-13 Page No 2 ACIT vs. Shri Bhooshan P Pathak

not dispute the same and submitted that the issue is left to the Tribunal to be decided in accordance with law.

3.

We find that the appeal of the Revenue is presented on 24.1.2018. On 11.7.2018 the CBDT has issued Instructions bearing No. 3 of 2018 under file No.F.No.279/Misc.142/2007-ITJ(Pt) prohibiting its subordinate authorities from filing of the appeal to the Tribunal against the order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.20 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present case, “tax effect” on the total income assessed minus the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal is filed, is less than Rs.20 lakhs. Further, the case of the Revenue does not fall within the ambit of exceptions provided in the Circular. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present 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. In view of the above, the appeal of the Revenue is dismissed due to low tax effect.

4.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 24-04-2019 Sd/- Sd/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER

I.T.A No. 201/Ahd/2018 A.Y. 2012-13 Page No 3 ACIT vs. Shri Bhooshan P Pathak

Ahmedabad : Dated 24/04/2019 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file.

By order/आदेश से, उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद

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