ACIT, CIRCLE-4(1)(2), AHMEDABAD vs. M/S. VIMAL OIL & FOODS LTD., AHMEDABAD

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ITA 2687/AHD/2017Status: DisposedITAT Ahmedabad08 March 2019AY 2014-153 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 filed by the Revenue was not maintainable due to the low tax effect, as per the CBDT circular. The Revenue was granted liberty to move a miscellaneous application if the tax effect exceeded the threshold or fell under an exception.

What were the facts?

The Revenue filed an appeal before the ITAT. The tax effect in the appeal was less than Rs. 20 lacs. The ITAT noted that as per CBDT Circular No. 3 of 2018, appeals with a tax effect below Rs. 20 lacs are liable to be dismissed.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the tax effect is below the monetary limit prescribed by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI AMARJIT SINGH&

For Appellant: Shri Mudit Nagpal, Sr. D.R
For Respondent: Shri Gulab Thakore, A.R
Pronounced: 08/03/2019

PER Ms. MADHUMITA ROY - JM: The instant appeal filed by the Revenue is against the order dated 11.09.2017 passed by the Commissioner of Income Tax (Appeals)-8, Ahmedabad under section 143(3) of the Income Tax Act, 1961 arising out of the order dated 30.08.2016 for the Assessment Year 2014-15. 2. At the time of the hearing, we observe that the tax effect in the appeal filed by the Revenue is less than Rs. 20 lacs. As per the Circular No. 3 of 2018 dated 11/07/2018 issued by CBDT recently all pending appeals filed by Revenue are liable to be dismissed/ withdrawn/ not pressed to reduce the litigation where the tax effect does not exceed the prescribed monetary limit, i.e., Rs.20 Lacs. The relevant extract of the circular is reproduced below: Asst.Year –2014-15 “2. In supersession of the above Circular, it has been decided by the Board that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified below.

3.

Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:

S. Appeals/ SLPs in Income-tax matters Monetary Limit No. (Rs.)

1.

Before Appellate Tribunal 20,00,000

2.

Before High Court 50,00,000

3.

Before Supreme Court 1,00,00,000

The monetary limit for filing the appeals by the Revenue before the Tribunal has been increased to Rs. 20 Lacs. It is also clarified in the said Circular that the said monetary limit is applicable retrospectively even to the appeals pending before the Tribunal. The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.20 lacs may be withdrawn / not pressed. Asst.Year –2014-15 provided in the aforesaid CBDT Circular in any manner. The MA shall be filed within the prescribed time. Hence the appeal of the Revenue is dismissed.

4.

In the result, the appeal filed by the department is dismissed. This Order pronounced in Open Court on 08/03/2019 ( AMARJIT SINGH ) ( Ms. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 08/03/2019 Priti Yadav, Sr.PS

आदेश क" ""त"ल"प अ"े"षत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant

2.

""यथ" / The Respondent. 3. संबं"धत आयकर आयु"त / Concerned CIT 4. आयकर आयु"त(अपील) / The CIT(A)-8, Ahmedabad.

5.

"वभागीय ""त"न"ध, आयकर अपील"य अ"धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड" फाईल / Guard file. आदेशानुसार/ BY ORDER, स"या"पत ""त //// उप/सहायक पंजीकार (Dy./Asstt.

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