DY. COMMISSIONER OF INCOME TAX, CIRCLE-17(2), HYDERABAD vs. VSN COMMERCIALS PRIVATE LIMITED, HYDERABAD
What did the Tribunal hold?
The Tribunal dismissed the appeal as not pressed/not maintainable, citing CBDT Circular No. 03/2018 which sets monetary limits for filing appeals. The issues raised were left open for future proceedings.
What were the facts?
The Revenue filed an appeal before the ITAT. Subsequently, the Revenue filed a letter to withdraw the appeal due to the tax effect being below the prescribed monetary limit.
What were the issues?
Whether the appeal should be dismissed based on the tax effect and CBDT circular, and if the issues are to be kept open for future consideration.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, HYDERABAD BENCHES “A”, HYDERABAD
Before: SMT. P. MADHAVI DEVI & SHRI S. RIFAUR RAHMAN
PER S. RIFAUR RAHMAN, A.M. :
This appeal filed by the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)–5, Hyderabad, dated 14-03-2018 for the AY. 2014-15.
Revenue filed a letter dt. 16-08-2018 to withdraw this appeal due to tax effect, as per which tax due from the assessee is only Rs. 18,71,662/-.
Therefore the Circular No. 03/2018 dated 11-07-2018 issued by the Central Board of Direct Taxes (CBDT) in exercise
:- 2 -: ITA No. 1047/Hyd/2018
of its power vested under Sec. 268A(1) of the I.T. Act comes into play, wherein, the monetary limit for filing the appeals by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of the reducing the tax litigation. Vide para 3 of the said circular (supra) is stated that in cases where the tax effect in the appeals to be filed before the Appellate Tribunal does not exceed Rs. 20 lakhs appeals should not be filed. Thus taking a note of CBDT Circular No. 03/2018, dated 11-07-2018 and considering the fact that the tax effect in the instant appeal is less than Rs. 20 lakhs, the present appeal deserves to be dismissed as not pressed / not maintainable. However, we make it clear that the issues raised in the instant appeal are left open to be examined in the appropriate proceedings, if arises, in future. At the same time we also make it clear that if the appeal falls in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so, advised.
Accordingly in the light of CBDT Circular No. 03/2018 dated 11-07-2018, the appeal stands dismissed.
Order pronounced in the open court on 5th April, 2019
Sd/- Sd/- (P. MADHAVI DEVI) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated 5th April, 2019 TNMM
:- 3 -: ITA No. 1047/Hyd/2018
Copy to :
The Dy. Commissioner of Income Tax, Circle-17(2), Hyderabad. 2. M/s. VSN Commercials Private Limited, 5-3-372, New Modi Mansion, RP Road, Hyderabad.
CIT(Appeals)-5, Hyderabad.
Pr.CIT-5, Hyderabad.
D.R. ITAT, Hyderabad.
Guard File.
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