What did the Tribunal hold?

The Tribunal dismissed the appeal filed by the Revenue. This was done in accordance with CBDT Circular No. 3 of 2018, which mandates dismissal of appeals where the tax effect does not exceed Rs. 20 lacs.

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The tax effect in the appeal was less than Rs. 20 lacs.

What were the issues?

Whether the Revenue's appeal should be dismissed based on the monetary limit prescribed by the CBDT circular for filing appeals before the ITAT.

ACIT vs Chaniyana Majur Kamdar Sahkari… | ITAT Ahmedabad 2019

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED&

For Appellant: Shri S. K. Dev, Sr. D.R

For Respondent: Shri M. K. Patel, A.R

Hearing: 22/01/2019Pronounced: 25/01/2019

PER Ms. MADHUMITA ROY - JM:

The instant appeal filed by the revenue is against the order dated 17.02.2014 passed by the Commissioner of Income Tax (Appeals)-XX, Ahmedabad arising out of the order dated 31.12.2012 for the Assessment Year 2010.11 passed by the ACIT, B.K. Circle, Palanpur under section 143(3) of the Income Tax Act, 1961 (The Act).

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3 of 2018 dated 11/07/2018 issued by CBDT recently all pending appeals filed by Revenue are liable to be dismissed/ withdrawn/ not pressed to reduce the litigation where the tax effect does not exceed the

- 2 - ITA No.1368/Ahd/2014 ACIT vs. The Chhniyana Majoor Kamdar Sahakari Mandali Ltd. Asst.Year – 2010-11 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.

In the case on hand, it was noticed that the tax effect on the disputed issue raised by the Revenue is claimed to be less Rs.20 Lacs. Therefore appeal of the Revenue is required to be dismissed in limine in terms of the above circular.

The Ld. DR for the Revenue fairly agreed on the applicability of the CBDT Circular No. 3 of 2018. Accordingly, the appeal of the Revenue is dismissed as not maintainable. However, the Revenue is on the liberty to move the miscellaneous application to recall the order if the tax effect exceeds the threshold limit or the case of the Revenue falls in any of the exception provided in the aforesaid CBDT Circular in any

- 3 - ITA No.1368/Ahd/2014 ACIT vs. The Chhniyana Majoor Kamdar Sahakari Mandali Ltd. Asst.Year – 2010-11

manner. The MA shall be filed within the prescribed time. Hence the appeal of the Revenue is dismissed.

In the result, the appeal filed by the department is dismissed. This Order pronounced in Open Court on 25/01/2019

Sd/- Sd/- ( WASEEM AHMED ) ( Ms. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER

Ahmedabad; Dated 25/01/2019 Priti Yadav, Sr.PS

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)-XX, 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 24/01/2018. 2. Date on which the typed draft is placed before the Dictating Member 25/01/2019 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……. 7. Date on which the file goes to the Bench Clerk………………… 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 ACIT,B.K. CIRCLE, PALANPUR vs. CHANIYANA MAJUR KAMDAR SAHKARI MANDALI LTD., BANASKANTHA

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