INCOME TAX OFFICER, WARD-4(3), HYDERABAD vs. SRINIVASU RAJU BOLLAPALLY, HYDERABAD

At the time of hearing, Ld.Counsel for the assessee submitted that the tax computation, giving effect to the order of CIT(A) and relief granted by the CIT(A) is only to the extent of Rs.46,84,601/-, which is less than the limit prescribed by the Circular No.17/2019.

Ld.DR, however, submitted that the AO had made an addition of Rs.1,83,38,672/- on account of disallowance of Sundry Creditors of current year account, amounting to Rs.1,82,11,685/- and also Rs.80,000/- on account of disallowance of Section 80C claim. He submitted that the CIT(A) has deleted the addition made on account of Sundry Creditors and has directed the AO to estimate income on these receipts also as business receipts @8%. He submitted that since the Revenue has challenged the deletion of addition of Sundry Creditors of Rs.1,82,11,685/-, the tax effect in this appeal is more than Rs.50 Lakhs. However, on going through the Circular No.17/2019, we find that the tax effect on the relief given by the CIT(A) only is to be considered for the purpose of considering the monetary limit for filing of the appeals before the Tribunal by the Revenue. Since the tax effect on the relief given by the CIT(A) is less than Rs.50 Lakhs, we are of the opinion that this appeal is below the tax limit and accordingly, the same is dismissed with liberty to the Revenue to seek recall of the order, if this case falls in any of the exceptions mentioned in the above circular.