THE ITO, (EXEMPTIONS), WARD-2, AHMEDABAD vs. SHREE DESHI LOHANA VIDHYARTHI BHAVAN, AHMEDABAD

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ITA 748/AHD/2017Status: DisposedITAT Ahmedabad25 March 2019AY 2013-142 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 found that the tax effect in the appeal was below the prescribed limit of Rs. 20 lacs as per CBDT Circular No. 3 of 2018. Since the case did not fall under any exemption clause, the appeal was deemed not maintainable.

What were the facts?

The Assessing Officer (AO) challenged the CIT(A)'s deletion of additions made on account of invoking Section 2(15) and outstanding liability. 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?

Whether the departmental appeal is maintainable before the Tribunal when the tax effect is below the monetary limit prescribed by CBDT circulars, and whether the CIT(A) was justified in deleting the additions.

Which sections of the Income-tax Act were involved?

Section 2(15),Section 11(1)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH, AHMEDABAD

ITA No. 748/Ahd/2017 ITO Vs. Shree Deshi Lohana Vidyarthi Bhavan Assessment Year : 2013-14 Page 1 of 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH, AHMEDABAD [Coram: Pramod Kumar, VP and Ms. Madhumita Roy, JM] ITA No. 748/Ahd/2017 Assessment Year: 2013-14 Income Tax Officer (Exemptions) .......…………...........Appellant Ward -2 , Ahmedabad Vs. Shree Deshi Lohana Vidhyarthi Bhavan ............................Respondent Kankaria Railway Yard, Vijay Tower Complex, Opp. Abad Dairy, Kankaria, Ahmedabad-380015 [PAN : AAAAS 5836 R] Appearances by: SK Dev, for the Appellant Ira Kapoor, for the Respondent Date of concluding the hearing : 09.01.2019 Date of pronouncing the order : 25.03.2019 O R D E R Per Pramod Kumar, Vice President : 1. By way of this appeal, the Assessing Officer has challenged correctness of the order dated 5th January 2017, passed by the learned CIT(A)-9, Ahmedabad for the assessment year 2013-14, on the following grounds:

“1. Whether on the facts and in the circumstances, is the ld. CIT(A) justified in giving the benefit of section 11(1)(d) by deleting the addition of Rs.37,54,700/- which the AO disallowed by invoking the provision of Section 2(15) of the Act.

2.

Whether on the facts and in the circumstances of the case, is the ld. CIT(A) justified in deleting the addition of Rs.49,79,505/- made on account of outstanding liability.”

2.

At the outset, learned 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 CBDT Circular No.3 of 2018 dated 11.07.2018. Learned Counsel for the assessee also submits that in the present case the tax effect is Rs.14,42,269/-, as per the working placed on record, which is below the prescribed limit of Rs.20 lacs. The learned Departmental Representative fairly admitted that the tax effect is less than the limit prescribed by the aforesaid CBDT Circular.

3.

We have heard the rival submissions 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. 3/2018 in F.No.279/Misc. 142/2007-ITJ (Pt)

ITA No. 748/Ahd/2017 ITO Vs. Shree Deshi Lohana Vidyarthi Bhavan Assessment Year : 2013-14 Page 2 of 2 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 exemptions 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 exemption clause and the tax effect is less than Rs.20 lacs. Therefore, the present appeal is not maintainable and hence dismissed.

4.

In the result, the appeal of the Revenue is dismissed. Pronounced in the open court today on the 25th March, 2019

Sd/- Sd/-

Ms. Madhumita Roy Pramod Kumar (Judicial Member) (Vice President) Ahmedabad, the 25th day of March, 2019 *bt Copies to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order

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