A./DY.C.I.T., CENTRAL CIRCLE, AGRA vs. M/S SANT LAL INDUSTRIES LTD., MAINPURI

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ITA 142/AGR/2013Status: DisposedITAT Agra08 August 2019AY 2007-083 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CBDT Circular No. 3/2018 is binding on departmental officers as per Section 268A(1) of the Income Tax Act. Therefore, the appeal filed by the Revenue was not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2007-08. The tax effect involved in the appeal was calculated to be Rs.16,04,094/-, which was below the threshold limit of Rs.20 lacs stipulated by CBDT Circular No. 3/2018.

What were the issues?

Whether the departmental appeal is maintainable when the tax effect is below the threshold limit prescribed by CBDT circulars, and if CBDT circulars are binding on departmental officers.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, AGRA BENCH: AGRA

Before: SHRI LALIET KUMAR & DR. MITHA LAL MEENA

For Appellant: Shri Waseem Arshad, Sr. DR
For Respondent: Shri Deependra Mohan, CA
Hearing: 02.08.2019Pronounced: 08.08.2019

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.

2.

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. "

4.

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.

5.

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

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