THE DCIT, CIRCLE-4, AHMEDABAD vs. HAWA ENGINEERS LTD., AHMEDABAD

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ITA 2113/AHD/2014Status: DisposedITAT Ahmedabad25 January 2019AY 2009-102 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 Revenue's appeal is not maintainable due to low tax effect, as per CBDT instruction no. 3 of 2018 and Section 268A of the Income Tax Act. The appeal was accordingly dismissed.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order which deleted additions made by the AO. The assessee argued that the appeal should be dismissed due to low tax effect as per CBDT instructions.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect is below the threshold stipulated by CBDT instructions.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI RAJPAL YADAV & SHRI WASEEM AHMED

Hearing: 23/01/2019Pronounced: 25/01/2019

PER RAJPAL YADAV, JUDICIAL MEMBER: Revenue is in appeal before the Tribunal against order of ld.CIT(A)-III, Ahmedabad dated 22.4.2014 passed for the Asstt.Year 2009-10.

2.

Revenue has challenged order of the ld.CIT(A) vide which the ld.CIT(A) has deleted various additions made by the AO aggregating to Rs.33,93,374/- .

3.

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 involved in it. He submitted that the tax effect on the total addition disputed by the Revenue of Rs.33,93,374/- is below Rs.20 lakhs, and therefore, by virtue of the CBDT instruction bearing no.3 of 2018 dated 11.08.2018, the Revenue is

ITA No.2113/Ahd/2014 2 prohibited from filing such appeal before the Tribunal 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.

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.

4.

In the result, appeal of the Revenue is dismissed due to low tax effect.

Order pronounced in the Court on 25th January, 2019 at Ahmedabad.

Sd/- Sd/- (WASEEM AHMED) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 25/01/2019

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