THE ACIT CORP CIR-1(2), KOCHI vs. M/S.HENRY & FARAD PVT LTD, EDAPALLY, KOCHI

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ITA 558/COCH/2018Status: DisposedITAT Cochin24 January 2019AY 2007-083 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the appeal as not maintainable, citing CBDT Circular No. 3/2018 which sets a monetary limit for appeals. The issues raised were left open for future proceedings.

What were the facts?

The Revenue filed an appeal before the ITAT for the assessment year 2007-2008. The tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

The maintainability of the Revenue's appeal before the ITAT due to the tax effect being below the prescribed monetary limit as per CBDT circular.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Chandra Poojari, AM & Shri George George K, JM

Hearing: 23.01.2018

Per George George K, JM

This appeal at the instance of the Revenue is directed against the order of the Commissioner of Income-tax (Appeals)-I, Kochi, dated 12.06.2017. The relevant assessment year is 2007-2008.

2.

It is observed that the tax effect in the appeal filed by the Revenue is less than Rs. 20 lakhs and therefore the Circular No. 3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under Sec. 268A(1) of the I.T. Act comes into play, wherein, the monetary limit for filing the appeal(s) by the Revenue before the ITAT

ITA No.558/Coch/2018 2 M/s.Henry & Farad Private Limited. and various High Courts as well as Apex Court are revised with an object of reducing the tax litigation. Vide para 3 of the said circular (supra), it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 20 lakhs, appeal should not be filed. Thus, taking a note of CBDT Circular No. 03/2018 dated 11.07.2018 and considering the fact that the tax effect in the instant appeal is less than Rs. 20 lakhs, the present appeal deserves to be dismissed, as not maintainable. However, we make it clear that the issue(s) raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so, advised.

3.

Accordingly in the light of CBDT Circular No. 03/2018 dated 11.07.2018, the appeal stands dismissed.

4.

In the result, the appeal filed by the Revenue is dismissed.

Order pronounced on this 24th day of January, 2019.

Sd/- Sd/- (Chandra Poojari) (George George K) ACCOUNTANT MEMBER JUDICIAL MEMBER

Cochin ; Dated : 24th January, 2019. Devdas*

ITA No.558/Coch/2018 3 M/s.Henry & Farad Private Limited. Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The Pr.CIT, Kochi. 4. The CIT(Appeals)-I, Kochi. 5. DR, ITAT, Cochin 6. Guard file.

BY ORDER,

(Asstt. Registrar) ITAT, Cochin

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