THE ACIT.,CENT.CIRCLE-2(1),, AHMEDABAD vs. M/S. FLOURISH PUREFOOD PVT.LTD.,, AHMEDABAD

ITSSA 274/AHD/2019Status: DisposedITAT Ahmedabad09 October 2024AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue is dismissed as not maintainable. This decision was based on the assessee's submission and the Revenue's admission regarding the applicability of CBDT Circular No. 09 of 2024. The circular revises the monetary threshold for appeals, and the assessee's calculation, which was not disputed by the Revenue, showed the total tax effect to be Rs. 59,74,358, which is below the revised limit of Rs. 60 Lakhs. The Tribunal accepted the contention that the appeal should be dismissed in limine. The Revenue was granted liberty to seek restoration of the appeal if it could demonstrate the inapplicability of the CBDT Circular in any manner. No specific issues regarding the merits of the assessment were decided.

What were the facts?

The Revenue, through the Assistant Commissioner of Income Tax, Central Circle-2(1), Ahmedabad, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, challenging an order passed by the Commissioner of Income Tax (Appeals)-12, Ahmedabad, for Assessment Year 2012-13. The assessee, M/s. Flourish Purefood Pvt. Ltd., contended that the Revenue's appeal was rendered infructuous and liable for dismissal in limine due to the issuance of CBDT Circular No. 09 of 2024. This circular revised the monetary limits for filing appeals, setting a new threshold of Rs. 60 Lakhs. The assessee provided a tax effect calculation chart indicating the total tax effect on the disputed issues did not exceed this revised limit.

What were the issues?

1. Whether the Revenue's appeal is maintainable in light of CBDT Circular No. 09 of 2024, which revises the monetary limits for filing appeals, and if the tax effect in the present case falls below the revised threshold? Assessee's Contention: The assessee argued that the appeal filed by the Revenue is hit by CBDT Circular No. 09 of 2024, which mandates the dismissal of pending appeals where the tax effect does not exceed Rs. 60 Lakhs. The assessee presented a tax effect calculation showing the total tax effect to be Rs. 59,74,358, thus falling below the stipulated limit. Therefore, the appeal should be dismissed in limine. Revenue's Contention: The Learned DR for the Revenue fairly admitted the applicability of CBDT Circular No. 09 of 2024.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SMT. ANNAPURNA GUPTA & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Tushar Hemani, Sr. Adv. & Shri

For Respondent: Shri B.P. Srivastava, Sr. DR

Hearing: 26.09.2024Pronounced: 09.10.2024

PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:

This appeal has been filed by the Revenue against the order passed by the Ld. Commissioner of Income Tax (Appeals)-12, (in short “Ld. CIT(A)”), Ahmedabad vide order 05.03.2019 passed for A.Y. 2012-13. 2. At the time of hearing, it was submitted by the Ld. AR for the assessee that appeal filed by the Revenue is hit by recently issued CBDT Circular No. 09 of 2024 dated 17.09.2024 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.60 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.60 lakhs and therefore appeal of the IT(SS)A No.274 /Ahd/2019 ACIT vs. M/s. Flourish Purefood Pvt. Ltd. Asst.Year –2012-13 - 2– Revenue is required to be dismissed in limine. The assessee has produced a Tax Effect calculation chart which is reproduced as below:

Particulars Amt. in dispute (Rs.) Rate of tax Tax effect (Rs.)

Ground # 1 1,63,22,111 30% 48,96,633 Ground # 2 20,40,263 30% 6,12,079 Ground # 7 51,429 30% 15,429 Total 1,84,13,803 55,24,141 Add: Surcharge (2J 5% 2,76,207 Tax (including surcharge) 58,00,348 Add: EC&SHEC @3% 1,74,010 Total Tax effect 59,74358

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 09 of 2024. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

In the result, the appeal of the Revenue is dismissed. This Order pronounced in Open Court on 09/10/2024 (ANNAPURNA GUPTA) JUDICIAL MEMBER Ahmedabad; Dated 09/10/2024 TANMAY, Sr. PSIT(SS)A No.274 /Ahd/2019 ACIT vs. M/s. Flourish Purefood Pvt. Ltd. Asst.Year –2012-13 - 3–

आदेश की "ितिलिप अ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant ""थ" / The Respondent. 2. 3. संबंिधत आयकर आयु" / Concerned CIT 4. आयकर आयु"(अपील) / The CIT(A)- 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड" फाईल / Guard file. आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt.

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