What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeals in limine, citing CBDT Circular No. 3 of 2018 which mandates dismissal or withdrawal of appeals below a certain monetary limit.

The Revenue filed appeals before the ITAT against assessment orders. The tax effect in these appeals was found to be less than Rs. 20 lacs.

What were the issues?

Whether appeals filed by the Revenue with a tax effect below the prescribed monetary limit should be dismissed as per CBDT circulars.

ITO vs Shri Dipesh Prabhudas Kothari… | ITAT Ahmedabad 2019

Income Tax Appellate Tribunal, “ D ” BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED & SMT. MADHUMITA ROY

For Respondent: Shri P.B.Parmar for M.K.Patel, AR

Hearing: 21/02/2019Pronounced: 28/02/2019

Heard together (2 matters)

ITA No.2751/Ahd/2013

ITA No.628/Ahd/2014

Read from the judgment's own cause title. This page is filed under one of them.

PER MADHUMITA ROY, JUDICIAL MEMBER: Both the captioned appeals have been filed at the instance of the Revenue against the separate orders of the Commissioner of Income Tax (Appeals)–6, Ahmedabad [CIT(A) in short] vide appeal no.CIT(A)- VI/Wd./3(2)/284/11-12 & 158/12-13 dated 23/09/2013 & 17.01.2014 arising in the assessment orders passed under s.143(3) of the Income Tax Act, 1961(hereinafter referred to as "the Act") dated 29.12.2011 & 22.02.2013 relevant to Assessment Years (AYs) 2009-10 & 2010-11.

ITA No.2751/Ahd/2013& ITA No.628/Ahd/2014 ITO vs. Dipesh Prabhudas Kothari (HUF) Asst.Years - 2009-10 & 2010-11 - 2 -

At the time of the hearing, we observe that the tax effect in the appeals 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No. 3 of 2018 dated 11/07/2018 issued by CBDT recently all pending appeals filed by Revenue are liable to be dismissed/ withdrawn/ not pressed to reduce the litigation where the tax effect does not exceed the prescribed monetary limit, i.e., Rs.20 Lacs.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:

“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.

ITA No.2751/Ahd/2013& ITA No.628/Ahd/2014 ITO vs. Dipesh Prabhudas Kothari (HUF) Asst.Years - 2009-10 & 2010-11 - 3 - In the case on hand, it was noticed that the tax effect on the disputed issues raised by the Revenue is claimed to be less Rs.20 Lacs. Therefore appeals of the Revenue are required to be dismissed in limine in terms of the above circular. 3. The adjournment petition filed by the ld.counsel for the assessee is dismissed as it is hit by low tax effect.

The Ld. DR for the Revenue fairly agreed on the applicability of the CBDT Circular No. 3 of 2018. Accordingly, the appeals of the Revenue are dismissed as not maintainable. However, the Revenue is on the liberty to move the miscellaneous application to recall the orders if the tax effect exceeds the threshold limit or the cases of the Revenue falls in any of the exception provided in the aforesaid CBDT Circular in any manner. The MA shall be filed within the prescribed time. Hence the appeals of the Revenue are dismissed.

In the result, both the appeals filed by the department are dismissed. This Order pronounced in Open Court on 28/02/2019

Sd/- Sd/- (WASEEM AHMED) ( MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 28 /02/2019 ट�.सी.नायर, व.�न.स./T.C. NAIR, Sr. PS

ITA No.2751/Ahd/2013& ITA No.628/Ahd/2014 ITO vs. Dipesh Prabhudas Kothari (HUF) Asst.Years - 2009-10 & 2010-11 - 4 -

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)-6, Ahmedabad �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 21.2.19 2. Date on which the typed draft is placed before the Dictating Member 21.2.19 3. Other Member… 4. Date on which the approved draft comes to the Sr.P.S./P.S … 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S……..28.2.19. 7. Date on which the file goes to the Bench Clerk…………………28.2.19 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order……………

THE ITO, WARD-3(2), AHMEDABAD vs. SHRI DIPESH PRABHUDAS KOTHARI, (HUF), AHMEDABAD

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments