THE DCIT(INT.TAXN), KOCHI vs. SRI.AMEER AHMED, KOCHI

At the very outset, the learned Counsel for the assessee submitted that the tax effect in this appeal filed by the Department is below the prescribed limit mentioned in Circular No.3/2018 (Circular dated 11.07.2018) for filing appeal before the Appellate Tribunal. It was submitted by the learned Counsel that the issue disputed in this appeal is regarding computation of long term capital gain for a sum of Rs.1,76,98,500. It was further submitted by the learned Counsel that since there was no indexation of cost of

The learned Departmental Representative present was duly heard.

We have heard the rival submissions and perused the material on record. It is observed that the tax effect in the appeal filed by the Revenue is less than Rs. 20 lakhs and therefore the Circular No. 3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under Sec. 268A(1) of the I.T. Act comes into play, wherein, the monetary limit for filing the appeal(s) by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of reducing the tax litigation. Vide para 3 of the said circular (supra), it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 20 lakhs, appeal should not be filed. Thus, taking a note of CBDT Circular No. 03/2018 dated 11.07.2018 and considering the fact that the tax effect in the instant appeal is less than Rs. 20 lakhs, the present appeal deserves to be dismissed, as not maintainable. However, we make it clear that the issue(s) raised in the instant appeal is left open to be examined in the

Accordingly in the light of CBDT Circular No. 03/2018 dated 11.07.2018, the appeal stands dismissed.

In the result, the appeal filed by the Revenue is dismissed.