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Income Tax Appellate Tribunal, AGRA BENCH: AGRA
Before: SHRI LALIET KUMAR & DR. MITHA LAL MEENA
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH: AGRA BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER
I.T.A No. 142/Agra/2013 (ASSESSMENT YEAR: 2007-08)
ACIT, Central Circle, Vs..M/s Sant Lal Industries Ltd., Agra. 233, Narayan Nagar, Mainpuri. PAN:AAFCS4152K Respondent) (Appellant)
Appellant by Shri Waseem Arshad, Sr. DR. Respondent by Shri Deependra Mohan, CA.
Date of Hearing 02.08.2019 Date of Pronouncement 08.08.2019
ORDER Per, Dr. M. L. MEENA, A. M.:
This appeal has been filed by the Revenue against the order of the ld. CIT(A) dated 31.10.2012, for A.Y. 2007-08.
We note that in the appeal filed by the Revenue the tax effect on the income
in dispute is less than Rs.20 lacs. The assessee submitted the computation of tax effect is as follows:
“The tax effect involved in appeal is Tax 30% Rs.14,29,675/-
I.T.A No. 142/Agra/2013 2
Surcharge @ 10% Rs.1,42,967/- Cess @ 2% Rs. 31,452/- Total Tax Rs.16,04,094/- In view of the above stated facts and legal position it is most respectfully submitted that the departmental appeal is not maintainable and may please be dismissed.” The Central Board of Direct Taxes, vide Circular No. 3/2018 dated 11th July, 3. 2018 file no.279 of Misc. 142/2007 - ITJ (PT), has issued the direction in supersession of the Instruction No. 21/2015 dated 10th December, 2015 in consonance with the power entrusted u/s.268A of the Income Tax Act, that no appeal should be filed before this Tribunal in case the tax effect does not exceed Rs.20 lac. The "tax effect" in this regard means the difference between the tax on the total income assessed and the tax that would have been chargeable, had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. This Circular further states that tax will not include any interest thereon, unless the chargeability of interest itself is in dispute. In paragraph 13, which is reproduced as under, it has been mentioned in the Circular, that this instruction will apply even to pending appeals:
"13. This instruction will apply to SLPs/ appeals/cross objections/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross
I.T.A No. 142/Agra/2013 3
objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. "
The tax effect in this appeal does not exceed Rs.20 lac. In view of this fact, as per the CBDT Circular No. 3/2018 dated 11th July, 2018 file no.279 of Misc.
142/2007 - ITJ (PT), the Revenue is not supposed to press this appeal. We,
therefore, dismiss the appeal filed by the revenue in limine, without going into the
merits of the case, as in our opinion, the Circular issued by the CBDT is binding on
the departmental officers in view of the provisions of Section 268A(1) of the Income Tax Act. The said view has been taken by the Hon’ble Supreme Court in the case of ‘Navneet Lal Zaveri’, 56 ITR 198 (SC). We, accordingly, dismiss the appeal filed by the Revenue.
In the result, the appeal filed by the Revenue stands dismissed.
Order pronounced in the open court on 08/08/2019.
Sd/- Sd/- (LALIET KUMAR) (DR. MITHA LAL MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER *AKV* Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT SR. PRIVATE SECRETARY ITAT AGRA