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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGHShri Mehul Dahyabhai Patel
PER RAJPAL YADAV, JUDICIAL MEMBER: Revenue is in appeal before the Tribunal against order of ld.CIT(A)-10, Ahmedabad dated 23.2.2017 passed for the Asstt.Year 2013-14.
Only ground raised in the appeal of the Revenue is that the ld.CIT(A) has erred in treating short term capital gain of Rs.1,04,04,325/- as income from other sources.
The ld. counsel for the assessee at the outset submitted that the appeal of the Revenue deserves to be dismissed on account of low tax effect as per the CBDT instruction bearing no.3 of 2018 dated 11.08.2018, which prohibited the Department not to file appeal before the Tribunal, where tax
ITA No.1181/Ahd/2017 2 effective is below Rs.20 lakhs. He filed a tax calculation sheet demonstrating that tax effect on the disputed addition is below Rs.20 lakhs. It reads as under:
Particulars Amount Amount Total income as per ROI 1,32,34,240
Less; income other than STCG @ 28,29,915 normal rate Balance STCG special rate income @ 1,04,04,325 15% 24,20,111 Tax on total Income as per ROI (A) Tax on STCG @ 15% 15,60,649 SC&EC@2%+1% 46,820
Tax on STCG as per ROI 16,07,469
1,32,34,240 Assessed Income
Tax on assessed income as per DN 39,10,272
SC&EC@2% + 1% 1,17,308
Total tax as per assessed income (B) 40,24,580
Incremental tax on STCG (B-A) 16,04,469
The ld.counsel for the assessee accordingly prayed that the tax effect on impugned addition being below Rs.20 lakhs, therefore, the present appeal is not maintainable at the threshold. The ld.DR has not disputed applicability of above circular cited by the ld.counsel for the assessee, and has not pointed out whether the case of the Revenue fall within the ambit of exceptions provided in the Circular or not. Thus, keeping in view the above CBDT circular, which is applicable to pending appeals also, and provisions of section 268A of the Income Tax Act, we are of the view that the appeal of the Revenue deserves to be dismissed. It is accordingly dismissed.
ITA No.1181/Ahd/2017 3 5. However, it is observed that in case on re-verification at the end of the AO it comes to the notice that the tax effect is more or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act.
In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Court on 1st February, 2019 at Ahmedabad.
Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER
Ahmedabad; Dated 01/02/2019