THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2, MANGALORE vs. M/S T V ALEYAS ENGINERS PVT LTD, BANGALORE

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ITA 1361/BANG/2017Status: DisposedITAT Bangalore21 February 2022AY 2011-123 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 as not maintainable, citing CBDT Circular No. 17/2019 which sets a monetary limit for appeals. The assessee's cross-objection was dismissed as infructuous.

What were the facts?

The Revenue filed an appeal before the ITAT, and the assessee filed a cross-objection. The tax effect in the Revenue's appeal was less than Rs. 50 lakh.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT due to a low tax effect, as per CBDT guidelines.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES “C” , BANGALORE

Before: Shri George George K, JM & Ms.Padmavathy S, JM

For Respondent: DR Assessee by : Sri. B.R.Sudheendra, Advocate
Hearing: 17.02.2022Pronounced: 21.02.2022

Heard together (2 matters)

ITA No.1361/Bang/2017
CO No.61/Bang/2019

Read from the judgment's own cause title. This page is filed under one of them.

O R D E R

Per George George K, JM

1.

This appeal at the instance of the Revenue and cross objection preferred by the assessee are directed against CIT(A)’s order dated 29.03.2017. The relevant assessment year is 2011-2012.

2.

At the very outset, it is observed that the tax effect in the appeal filed by the Revenue is less than Rs.50 lakh, and therefore, the Circular No. 17/2019 dated 8th August, 2019, issued by the Central Board of Direct Taxes (CBDT) in exercise

CO 61/B/2019 M/s.T V Aleyas Engineers Pvt. Ltd. of its power vested under Sec. 268A of the I.T. Act comes into play, wherein, the monetary limit for filing the appeal(s) by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of reducing the tax litigation. Vide para 2 of the said circular (supra), it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 50 lakh, appeal should not be filed. Thus, taking a note of CBDT Circular No. 17/2019 dated 8th August, 2019 and considering the fact that the tax effect in the instant appeal is less than Rs.50 lakh, the present appeal deserves to be dismissed, as not maintainable. However, we make it clear that the issue(s) raised in the instant appeal is 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.

3.

Accordingly, in the light of CBDT Circular No.17/2019 dated 08th August, 2019, the appeal of the Revenue stands dismissed.

4.

Since we have disposed of the appeal of the Revenue, the cross objection filed by the assessee becomes infructuous and the same is dismissed as such.

CO 61/B/2019 M/s.T V Aleyas Engineers Pvt. Ltd.

5.

In the result, the appeal filed by the Revenue and the cross objection filed by the assessee are dismissed.

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