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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGH
PER RAJPAL YADAV, JUDICIAL MEMBER: Revenue is in appeal before the Tribunal against order of ld.CIT(A)-1, Ahmedabad dated 30.8.2011 passed the Asstt.Year 1997-98.
Only ground in this appeal relates to deletion of addition of Rs.35,91,717/- made by the AO under section 68 of the Income TaxACt.
The ld. counsel for the assessee submitted that the appeal of the Revenue deserves to be dismissed on account of low tax effect involved in it. He submitted that the CBDT has issued a circular bearing no.3 of 2018 dated 11.08.2018, vide which it has prohibited its authorities not to file appeal
ITA No.2633/Ahd/2011 2 before the Tribunal, if tax effect by virtue of relief given by the CIT(A) is less than Rs.20 lakhs. On deletion of impugned addition tax effect will be less than Rs.20 lakhs, and therefore, the present appeal is not maintainable in view of the above CBDT Circular. Further, ld.DR 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 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.
In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Court on 18th January, 2019 at Ahmedabad.
Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER
Ahmedabad; Dated 18/01/2019