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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
ITA No. 345/Agr/2018 Assessment Year: 2014-15
DCIT, Circle 2(2)(1), vs. M/s. Jabar Singh Kaushalya Devi Firozabad. Hospital Pvt. Ltd., Friends Colony, Distt. Etawah (PAN-AABCJ7512Q) (Appellant) (Respondent)
C.O. No. 51/Agr/2019 (in ITA No. 345/Agr/2018) Assessment Year: 2014-15
M/s. Jabar Singh Kaushalya Devi vs. DCIT, Circle 2(2)(1), Hospital Pvt. Ltd., Friends Colony, Firozabad. Distt. Etawah (PAN-AABCJ7512Q) (Appellant) (Respondent)
Assessee by Sh. Deepak Maheshwari, Advocate Revenue by Sh. Waseem Arshad, Sr. DR
Date of Hearing 29.07.2019 Date of Pronouncement 30.07.2019
ORDER Per Laliet Kumar, J.M.: The appeal by the Revenue and Cross-objection by assessee are filed against the order dated 05.02.2018 passed by learned CIT(A)-2, Agra for the assessment year 2014-15.
Heard both the parties and perused the record.
ITA No. 345/Agr/2018 & C.O. No. 51/Agr/2019 2
During the course of hearing, the Ld. Sr. DR submitted that there is no doubt that tax effect involved in the appeal is less than Rs.20 lakhs, thus, bound by the CBDT Instruction No. 3/2018, dated 11th July, 2018, the appeal has to be withdrawn. However, attention was invited to para 10 of the Circular No. 3/2018, dated 11th July, 2018, which has been modified by Circular dated 20th August, 2018 and in terms of the said modification the Departmental Representatives made a prayer that permission to pray for recall of the order may be granted in case any of the conditions in the reports made available by the A.O. subsequently, show that the issues were required to be contested. The modified para is extracted hereunder:
“10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:
(a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or
(b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or
(c) Where Revenue Audit objection in the case has been accepted by the Department, or
(d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account.
(e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI).
(f) Cases where prosecution has been filed by the Department and is pending in the Court. ”
ITA No. 345/Agr/2018 & C.O. No. 51/Agr/2019 3
Going by the prescription of Circular No. 3/2018, dated 11th July, 2018, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or should have withdrawn the same as the tax effect in the appeal is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/-. Accordingly, we dismiss the appeal filed by the Revenue as non maintainable. However, it is made clear that the Department shall be at liberty to seek recall of this order, if the tax effect is found to be more than the prescribed limit of Rs.20,00,000/- or any of the conditions etc., as available in the amendment carried out in para 10 of Circular No. 3/2018, dated 20.08.2018, is made out. Accordingly, the appeal of the Revenue deserves to be dismissed. The cross objection filed by the assessee also stands dismissed, as withdrawn by the ld. AR.
In the result, the appeal as well as cross-objection are dismissed. Order pronounced in the open court.
Sd/- Sd/- (Dr. Mitha Lal Meena) (Laliet Kumar) Accountant Member Judicial member
Dated: 30.07.2019 *aks* Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order Assistant Registrar Income Tax Appellate Tribunal Agra Bench, Agra