THE ITO, WARD-3(3)(3), AHMEDABAD vs. MITABEN P. SHAH, AHMEDABAD

ITA 2497/AHD/2017Status: DisposedITAT Ahmedabad29 January 2019AY 2013-147 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 appeals were not maintainable as the tax effect in each case was below the threshold limit of Rs. 20 Lacs specified by CBDT Circular No. 3/2018. However, liberty was granted to the Revenue to seek recall of dismissal for cases falling under exceptions or with a higher tax effect.

What were the facts?

The Revenue filed multiple appeals before the ITAT challenging orders passed by the CIT(A). The appeals were heard together and the Tribunal noted a prima facie issue regarding their maintainability.

What were the issues?

The primary issue was the maintainability of the Revenue's appeals before the Tribunal due to the tax effect being below the prescribed monetary limit set by the CBDT.

Which sections of the Income-tax Act were involved?

CBDT Circular No.3/2018

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD ‘A1’ BENCH, AHMEDABAD

Pronounced: 29.01.2019

Per Bench:

In all these appeals, the appellant Assessing Officer has challenged correctness of the orders passed by the learned CIT(A).

When these appeals were taken up for hearing, it was noticed that prima-facie these appeals of the Revenue are not maintainable in view of the CBDT Circular No.3/2018 in F.No.279/Misc.142/2007-ITJ (Pt) dated 11th July, 2018, vide which it

ITA No.2501/Ahd/2017 and others Alpesh Dhanjibhai Prajapati and others Page 7 of 7 has been decided by the Board that no departmental appeals should be filed before the Tribunal if the tax effect by virtue of the Commissioner of Income-tax (Appeals)’s order is below Rs. 20 Lacs. The Board has provided exemptions at clause (10) of the Instructions wherein it has been provided that these instructions will not be applicable, where the Constitutional validity of the provisions of an Act/Rule is under challenge or where Board’s order, notification, instruction or circular has been held to be illegal or where Revenue Audit objection in the case has been accepted by the Department or where the addition relates to undisclosed foreign assets/bank accounts etc. We find that the present cases do not fall within the exemption clause and the tax effect is less than Rs.20 Lacs in each appeal.

Learned Departmental Representative states the liberty may kindly be given to point out, upon necessary further verifications, and to seek recall the dismissal of appeals and restoration of the appeals in the cases (i) in which it can be demonstrated that the appeals are covered by the exceptions (ii) which are inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular (supra), exceeds Rs 20,00,000. None opposes this prayer; we accept the same. We make it clear that the appellants shall be at liberty to point out the cases which are wrongly included in the appeals so summarily dismissed, either owing to wrong computation of tax effect or owning to such cases being covered by the permissible exceptions- or for any other reason, and we will take appropriate remedial steps in this regard.

In view of the above discussions, the appeals are dismissed as not maintainable. 5. In the result, and subject to the above observation, all the appeals filed by the Revenue are dismissed. Pronounced in the open Court today on the 29th day of January, 2019.

Sd/- Sd/- Justice P P Bhatt Pramod Kumar (President) (Vice President) Ahmedabad, dated the 29th day of January, 2019 PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) DR (6) Guard File

By order

Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad

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