What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal solely on the grounds of low tax effect, as per CBDT Circular No. 17/2019. The Revenue can seek restoration if exceptions in the circular apply.

What were the issues?

Whether the appeal should be dismissed due to low tax effect as per CBDT circulars. The merits of depreciation on vacant premises were not adjudicated.

ACIT vs Shriram Krishnaji Surve, Satara | ITAT Pune 2019

Q: What were the facts?

The Revenue appealed against an order granting relief of Rs. 38,80,588/- on account of depreciation on vacant premises. The tax effect in the appeal was less than Rs. 50 Lakhs.

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI

For Appellant: Shri M.K. Kulkarni

For Respondent: Shri Pankaj Garg

आदेश / ORDER

PER S.S. VISWANETHRA RAVI, JM :

This appeal by the Revenue against the order dated 02-05-2017 passed by the Commissioner of Income Tax (Appeals)-4, Pune for assessment year 2014-15.

2 ITA No.2090/PUN/2017, A.Y. 2014-15

The Ld. Counsel for the assessee, Shri M.K. Kulkarni 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. Counsel submitted that the Department in appeal has assailing the findings of Commissioner of Income Tax (Appeals) in giving relief of Rs.38,80,588/- on account of depreciation on vacant premises situated at Trade Centre, Bhosari, Pune.

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. Counsel submitted that the Department in appeal has assailing the findings of Commissioner of Income Tax (Appeals) in giving relief of Rs.38,80,588/- on account of depreciation on vacant premises situated at Trade Centre, Bhosari, Pune. 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

3 ITA No.2090/PUN/2017, A.Y. 2014-15

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.

In the result, appeal of the Revenue is dismissed.

Order pronounced in the open court on 18th September, 2019.

Sd/- Sd/- (R.S. Syal) (S.S. Viswanethra Ravi) VICE PRESIDENT JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 18th September, 2019 RK आदेश की प्रनिलऱपप अग्रेपषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2. आयकर आयुक्त (अऩीऱ) / The CIT(A)-4, Pune 3. 4. The Pr. Commissioner of Income Tax-3, Pune ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, “बी” बेंच, 5. ऩुणे / DR, ITAT, “B” Bench, Pune. गार्ड फ़ाइऱ / Guard File. 6. //सत्यावऩत प्रतत// True Copy// आदेशानुसार / BY ORDER,

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

ASSISTANT COMMISSIONER OF INCOME-TAX, SATARA CIRCLE, SATARA vs. SHRIRAM KRISHNAJI SURVE, SATARA

What did the Tribunal hold?

What were the facts?

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