THE ITO, KOCHI vs. M/S.SPECTRUM SOFT TECH SOLUTIONS P. LTD, KOCHI

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ITA 509/COCH/2018Status: DisposedITAT Cochin21 March 2019AY 2012-132 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that based on CBDT Circular No. 3/2018 and the jurisdictional High Court's judgment, appeals with a tax effect below Rs. 20 lakhs should not be filed.

What were the facts?

The Revenue filed appeals before the ITAT for assessment years 2012-13 and 2015-16. Both parties agreed that the tax effect in these appeals was less than Rs. 20 lakhs.

What were the issues?

The primary issue was the maintainability of the Revenue's appeals before the ITAT given the low tax effect, in light of CBDT circulars and judicial precedents.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Chandra Poojari, AM & Shri George George K, JM

For Appellant: Shri Rejinark, Adv
For Respondent: Smt. Bindhu A.S., Sr. DR, Shri Rejinark, Adv
Hearing: 21/03/2019

Per BENCH:

These appeals filed by the Revenue are directed against the order of the

Commissioner of Income-tax (Appeals)-I, Kochi dated 14/08/2018 and pertain

to the assessment years 2012-13 & 2015-16.

2.

At the time of hearing, both the parties stated that the tax effect in these

appeals were less than Rs. 20 lakhs and therefore, 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 would come into play, wherein,

the monetary limit for filing the appeals by the Revenue before the ITAT and

various High Courts as well as Apex Court were 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

2 ITA No.509&510/Coch/2018.

Tribunal does not exceed Rs. 20 lakhs, appeal should not be filed. Thus, taking

note of CBDT Circular No. 03/2018 dated 11.07.2018 and also the judgment of

the Jurisdictional High Court in the case of CIT vs. Tata Ceramics Ltd. (102 CCH

0094) and considering the fact that the tax effect in the instant appeals is less

than Rs. 20 lakhs, the present appeals deserve to be dismissed as not

maintainable.

3.

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

the appeals stand dismissed.

4.

In the result, the appeals filed by the Revenue are dismissed. Order pronounced on this 21st March, 2019.

sd/- sd/- (GEORGE GEORGE K.) (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER

Place: Kochi Dated : 21st March, 2019 GJ Copy to: 1. M/s. Spectrum Soft Tech solutions Pvt. Ltd., Mahakavi G. Road, Karakkamuri, Kochi-682 011. 2. The Income Tax officer, Corporate Ward-2(1), Kochi. 3. The Commissioner of Income-tax(Appeals)-I, Kochi. 4. The Pr. Commissioner of Income-tax, Kochi. 5. D.R., I.T.A.T. Cochin Bench, Kochi. 6. Guard File. By Order

(Assistant Registrar) I.T.A.T., Cochin Bench

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