What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeals. However, it was noted that the tax effect in these appeals was below the threshold limit prescribed by CBDT circulars for filing appeals before the Tribunal.

The Revenue filed appeals before the ITAT with a delay of 1 to 3 days. The appeals were against orders of the CIT(Appeals).

What were the issues?

Whether the appeals filed by the Revenue are maintainable before the Tribunal given the low tax effect, as per CBDT circulars.

DCIT vs Prag Distillery Private Limited | ITAT Hyderabad 2019

Income Tax Appellate Tribunal, HYDERABAD BENCHES “A”, HYDERABAD

Before: SMT. P. MADHAVI DEVI & SHRI A. MOHAN ALANKAMONY

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A”, HYDERABAD

BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER Appellant Respondent ITA No. Asst. Year 1079/Hyd/19 2013-14 (Quarter-1) Deputy M/s.Prag Distillery 1104/Hyd/19 2013-14 Commissioner of Private Limited, (Quarter-2) Income Tax, HYDERABAD International [PAN: AADCP7665A] 1105/Hyd/19 2013-14 Taxation-2, (Quarter-3) HYDERABAD 1106/Hyd/19 2013-14 (Quarter-4) For Revenue : Shri Suku Srinivas, DR For Assessee : NONE Date of Hearing : 13-11-2019 Date of Pronouncement : 13-11-2019 O R D E R PER BENCH : These appeals filed by the Revenue are directed against the orders of the Commissioner of Income Tax(Appeals)-8, Hyderabad.

Condonation of delay: 2. The appeal of Revenue in ITA No.1079/Hyd/2019 has been filed with a delay of one day and all the remaining appeals have been filed with a delay of three days. Revenue has filed affidavits, seeking condonation of delay in filing the appeals.

:- 2 -: M/s. Prag Distillery Private Limited

2.1. Considering the petitions for condonation of delay filed by the Revenue and being satisfied with the reasonable cause for the delay, we hereby condone the delay in filing the appeals and proceed to hear the appeals.

At the time of hearing, it has been brought to our notice that as per the CBDT Circulars No.03/2018 dated 11-07-2018 and Circular No.17 of 2019 dated 8th August, 2019, the tax limit for filing of appeal by the Revenue before the Tribunal has been fixed at Rs.50 Lakhs.

After hearing Ld.DR and perusing the records as placed before us, we find that these appeals are covered by the aforesaid circular and therefore, not maintainable, since the tax effect in these appeals is less than Rs.50 Lakhs and apparently the cases are not covered by any of the exceptions in the circular. We therefore dismiss all these appeals on account of low tax effect. However, the Revenue is at liberty to seek recall of the order, if all or any of these cases are found to be falling within the exceptions mentioned in the circulars cited above.

In the result, all the appeals filed by Revenue are dismissed.

Order pronounced in the open court on 13th November, 2019

Sd/- Sd/- ( P. MADHAVI DEVI ) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated 13th November, 2019 TNMM

:- 3 -: M/s. Prag Distillery Private Limited

Copy to : 1. Deputy Commissioner of Income Tax, International Taxation-2, Hyderabad. 2. M/s.Prag Distillery Private Limited, Flat No.109, Reliance Residency, Indira Park Road, Opp:NTR Stadium, Ashok Nagar, Hyderabad. 3. CIT (Appeals)-8, Hyderabad. 4. CIT(TDS)-Hyderabad. 5. D.R. ITAT, Hyderabad. 6. Guard File.

DY. COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION-2, HYDERABAD vs. PRAG DISTILLERY PRIVATE LIMITED, HYDERABAD

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