DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - १४, PUNE vs. M/S. KNORR BREMSE SYSTEMS FOR COMMERCIAL VEHICLES INDIA PVT. LTD., PUNE

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ITA 1796/PUN/2017Status: DisposedITAT Pune21 November 2019AY 2011-124 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 dismissed the Revenue's appeal without going into the merits of the case. This was solely based on the tax effect being below the monetary limit prescribed by the CBDT circulars for filing appeals.

What were the facts?

The Revenue appealed an order of the CIT(Appeals) concerning the assessment year 2011-12. The assessee argued for dismissal based on low tax effect as per recent CBDT circulars. The Revenue conceded that the tax effect was below the enhanced monetary limit.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed due to the tax effect being below the threshold stipulated by CBDT circulars for filing appeals before the Tribunal.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, PUNE

Before: SHRI R.S.SYAL, VP & SHRI PARTHA SARATHI CHAUDHURY, JM

For Appellant: Shri Rajendra Agiwal
For Respondent: Shri T. Vijaya Bhaskar Reddy, CIT
Hearing: 20.11.2019Pronounced: 21.11.2019

आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM :

This appeal preferred by the Revenue emanates from the order of the Ld. CIT(Appeals)-13, Pune dated 27.04.2017 for the assessment year 2011-12 as per the grounds of appeal on record.

2 ITA No. 1796/PUN/2017 A.Y.2011-12

2.

The Ld. AR of the assessee submitted at the outset that the appeal of Revenue are liable to be dismissed on account of low tax effect in terms of recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)], dated 08.08.2019 read with Circular No.3 of 2018 dated 11.07.2018 revising the upward monetary limits for filing of appeals in Income Tax Cases before various Appellate Forums. The earlier CBDT Circular No.03/2019 dated 11.07.2018 fixed monetary limit for filing of appeals before the Tribunal at Rs.20 Lakhs. Such limit has been enhanced in the recent CBDT Circular dated 08.08.2019 from Rs.20 lakhs to Rs. 50 Lakhs. Thus, the tax effect on the addition is less than Rs.50 Lakhs.

3.

The Ld. DR fairly admitted that in the present appeal by the Department tax effect is less than Rs.50 Lakhs.

4.

Both sides heard. The Revenue is in appeal against the order of Ld. CIT(Appeals) in upholding the change in finance and tax team of the assessee is sufficient reason by which the assessee was prevented from furnishing evidence during the year long TP proceedings. Undisputedly, the tax effect involved in these appeals is less than the monetary limit prescribed by the recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)] dated 08-08-2019 read with Circular No.3 of 2018 dated 11.07.2018 for filing of appeals before the Tribunal by the Department. The CBDT vide circular dated 08.08.2019 (supra.) has amended Para 3 of Circular No.3 of 2018 dated 11.07.2018 thereby enhancing monetary limit of tax effect from Rs.20 Lakhs to Rs.50 Lakhs for filing appeals by the Department before the Tribunal. Thus, without going into merit of the issues raised in the appeal, in view of the CBDT Circular (supra), we dismiss the appeal filed by the Revenue.

3 ITA No. 1796/PUN/2017 A.Y.2011-12

5.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20-08-2018.

6.

In the result, the appeal of the Revenue is dismissed.

Order pronounced on 21st day of November, 2019.

Sd/- Sd/- R.S.SYAL PARTHA SARATHI CHAUDHURY VICE PRESIDENT JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 21st November, 2019. SB आदेश की प्रनिलऱपप अग्रेपषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2. 3. The CIT(Appeals)-13, Pune. 4. The Pr. CIT-5, Pune. , आयकर अऩीऱीय अधधकरण, “सी” बेंच, 5. ववभागीय प्रतततनधध ऩुणे / DR, ITAT, “C” Bench, Pune. गार्ड फ़ाइऱ / Guard File. 6.

// True Copy // आदेशानुसार / BY ORDER,

तनजी सधचव / Private Secretary आयकर अऩीऱीय अधधकरण, ऩुणे / ITAT, Pune.

4 ITA No. 1796/PUN/2017 A.Y.2011-12

Date 1 Draft dictated on 20.11.2019 Sr.PS/PS 2 Draft placed before author 21.11.2019 Sr.PS/PS 3 Draft proposed and placed JM/AM before the second Member 4 Draft discussed/approved by AM/JM second Member 5 Approved draft comes to the Sr.PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order

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