DEPUTY COMMISSIONER OF INCOME-TAX,, NASHIK vs. RAJCHAND R. TRIPATHI,, NASHIK

Shri Uodal Raj Singh representing the Department fairly admitted that in the present appeal by the Department tax effect is less than Rs.50

We have heard the submissions of ld. DR and have perused the material available on record. The Revenue is in appeal against the common order of Commissioner of Income Tax (Appeal) for assessment years 2009- 10 and 2010-11 in partly deleting the disallowance of excess wages claimed by the assessee i.e. Rs.1,30,08,019/- in assessment year 2009-10 and Rs.1,39,70,095/- in assessment year 2010-11. In assessment year 2013-14 the Commissioner of Income Tax (Appeals) deleted the addition of Rs.94,18,783/- on account of late payment of employees contribution towards PF and ESIC and reduces disallowance of excess wages by Rs.55,98,651/-. As per the chart furnished by the ld. DR, the tax effect involved in the appeals is as under : Assessment year Tax effect (in Rs.) 2009-10 44,62,389/- 2010-11 44,08,157/- 2013-14 46,40,571/-

Undisputedly, tax effect in appeals under consideration 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 appeals, in view of the CBDT

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal(s), with the requisite material to show that the appeal(s) is/are 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, all the three appeals of Revenue are dismissed.