ASSISTANT COMMISSIONER OF INCOME TAX,, PUNE vs. PANDIT AUTOMOTIVE PVT.LTD,, PUNE

The CBDT vide Circular No.3/2018, dated 11.07.2018 has revised the monetary limits for filing of appeals by the Department before the Tribunal with retrospective effect. As per the Circular (supra), the monetary limit of tax effect for filing appeals before the Tribunal by the Department has been raised to Rs.20 lakhs.

The Ld. DR fairly admitted that in the present appeal by the Department tax effect is less than Rs.20 Lakhs.

We have perused the case record and heard the submissions of the Ld. DR. The only issue raised in appeal by the Department is disallowance of interest expenditure u/s.36(1)(iii) on advance of Rs.48,06,057/- given to Ashok Automotives Sales & Services Pvt. Ltd. by the assessee. Undisputedly, the tax effect involved in appeal is less than the monetary limit prescribed by CBDT Circular for filing of appeals before the Tribunal by the Department. The CBDT vide Circular No. 3/2018, dated 11-07-2018 has raised the monetary limit of tax effect for filing of appeals by the Department before the Tribunal to Rs.20 lakhs. The Circular applies to the appeals to be filed by the Department in future as well as the appeals pending before the Tribunal. Without going into merit of the grounds 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 to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular (supra).

In the result, appeal of the Revenue is dismissed.