DEPUTY COMMISSIONER OF INCOME-TAX,, PUNE vs. M/S. BOSCH CHASSIS SYSTEMS INDIA PVT.LTD,, PUNE

Shri K.K. Ojha representing the Department fairly admitted that in the present appeal by the Department tax effect is less than Rs.20 Lakhs.

We have heard the submissions of ld. DR and have perused the material available on record. The Revenue is in appeal against the order of Commissioner of Income Tax (Appeal) in restricting the disallowance u/s. 14A r.w. Rule 8D to Rs.2,60,884/- as against disallowance of Rs.41,46,000/- made by Assessing Officer. Apart from above, no other issue is raised in the appeal by Revenue. Prima-facie, the tax effect involved in appeal is less than the monetary limit prescribed by the 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 merits of the issue raised in the appeal, 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.