DEPUTY COMMISSIONER OF INCOME-TAX, PUNE vs. INDO GLOBAL BUILDCON PRIVATE LIMITED, PUNE

PER ANIL CHATURVEDI, AM :

This appeal filed by the Revenue is emanating out of the order of Commissioner of Income Tax (A) – Pune – 1 dated 10.02.2017 for A.Y. 2012-13.

Assessee is a Company, who electronically filed its return of income for A.Y. 2012-13 on 25.09.2012 declaring total income of Rs.74,69,004/-. The case was selected for scrutiny under CASS and thereafter assessment was framed u/s 143(3) of the Act vide order

dated 27.03.2015 and the total income was assessed at

Rs.1,25,51,160/-. Aggrieved by the order of AO, assessee carried the

matter before Ld.CIT(A) who vide order dt.10.02.2017 (in appeal

No.CIT(A), Pune-1/1027/2015-16) granted partial relief to the

assessee. Aggrieved by the order of Ld.CIT(A), Revenue is now in

appeal before us and has raised the following grounds :

“1. The order of the Ld. Commissioner of Income Tax (Appeals) is contrary to law and on facts and in circumstances of the case. 2. The Ld. . CIT(A) erred on the facts and circumstances of the case in directing to treat the rental income under the head "House Property Income" even though the assessee company was engaged in the business of leasing and development of immovable properties and the said property was let out with the intention to earn commercial gains 3. For these and such other grounds as may be urged at the time of hearing, the order of the Ld. Commissioner of Income Tax (Appeals) may be vacated I and that of the Assessing officer be restored.”

the Revenue is not maintainable on account of low tax effect and

therefore, the appeal of the Revenue be dismissed. Ld.D.R. did not

object to the aforesaid contention made by the Ld.A.R. but however

supported the order of lower authorities.

available on record. On perusing the grounds of appeal raised by the

Revenue, we find that Revenue is aggrieved by the order of ld. CIT(A)

in respect of the relief given by him. As per the recent announcement

of Central Board of Direct Taxes (CBDT) dated 11.07.2018 (Circular

No. 3 of 2018), no Department appeals are to be filed against relief

given by ld. CIT(A) before the Income Tax Appellate Tribunal unless

the tax effect, excluding interest, exceeds Rs.20 lakhs and it further

states that the instructions will apply retrospectively to the pending appeals also. In the present case, it is an undisputed fact that on the addition which is in dispute, the tax effect is less than Rs.20 lakhs. In the absence of any material placed on record by the Revenue to demonstrate that the issue in the present appeal is covered by exceptions provided in para 10 of the aforesaid CBDT Circular, we are of the view that the monetary limit prescribed by the instructions of the aforesaid CBDT Circular would be applicable to the present appeal of the Department. We therefore hold the present appeal of Revenue to be not maintainable on account of low tax effect and accordingly dismiss the appeal of Revenue without expressing any opinion on merits of the case. However, in case there is any error in the computation of the tax effect involved or if for any reason, the aforesaid CBDT Circular is not applicable, it would be open to the Revenue to seek revival of the appeal. Thus, the grounds of the Revenue are dismissed.

Order pronounced on 12th day of July, 2019.

Sd/- Sd/- (VIKAS AWASTHY) (ANIL CHATURVEDI) �या�यक सद�य / JUDICIAL MEMBER लेखा सद�य / ACCOUNTANT MEMBER

पुणे Pune; �दनांक Dated : 12th July, 2019. Yamini

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent 3. CIT(A)-1, Pune. 4. Pr. CIT-1, Pune. 5 �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “बी” / DR, ITAT, “B” Pune; गाड� फाईल / Guard file. 6.

आदेशानुसार/ BY ORDER

// True Copy // व�र�ठ �नजी स�चव / Sr. Private Secretary आयकर अपील�य अ�धकरण ,पुणे / ITAT, Pune.