DEPUTY COMMISSIONER OF INCOME-TAX, CORPORATE CIRCLE - 1(2), CHENNAI vs. M/S. COMPASS GROUP (INDIA) SUPPORT SERVICES PVT.LTD, (FORMERLY TIRUMALA HOSPITALITY SERVICES PVT.LTD.), CHENNAI

The Ld. AR, Shri Gaurav Shrawagi submitted at the outset that the appeal of Revenue is liable to be dismissed on account of low tax effect in terms of recent CBDT Circular No. 17/2019, dated 08-08-2019. The Ld. AR submitted that the Department in appeal has assailing the findings of Commissioner of Income Tax (Appeals) in allowing assessee’s appeal on the issue of addition u/s. 2(24)(x) r.w.s. 36(1)(va) of the Act with regard to the delay in the payment of employee’s contribution to ESIC and PF.

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

Heard both parties and perused the materials available on record. The Ld. AR submitted that the Department in appeal has assailing the findings of Commissioner of Income Tax (Appeals) in allowing assessee’s appeal on the issue of addition u/s. 2(24)(x) r.w.s. 36(1)(va) of the Act with regard to the delay in the payment of employee’s contribution to ESIC and PF. Undisputedly, the tax effect involved in appeal is less than the monetary limit prescribed by the recent CBDT Circular No. 17/2019, dated 08-08-2019 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 of 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) the present appeal of the Revenue is dismissed on account of low tax effect.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material

In the result, appeal of the Revenue is dismissed.