What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal on the grounds of low tax effect. The tax effect was below the threshold limit of Rs. 50 lakhs stipulated by CBDT Circular No. 17/2019.

The Revenue filed an appeal against the CIT(A)'s order which allowed the assessee's claim of Rs. 56,42,863/- as revenue expenditure. The appeal was filed for the assessment year 2009-10.

What were the issues?

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

ACIT vs M/S Bosch Limited | ITAT Bangalore 2022

Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE

Before: SHRI. CHANDRA POOJARI & SMT. BEENA PILLAI

For Appellant: Ms. Manasa Ananthan, CA, Shri Sumer Singh Meena

For Respondent: DR (OSD)

Assessee by : Ms. Manasa Ananthan, CA : Shri Sumer Singh Meena, Revenue by CIT DR (OSD) Date of Hearing : 03-02-2022 Date of Pronouncement : 03-02-2022 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal is filed by revenue against the order dated 28/08/2014 passed by Ld.CIT(A), LTU, Bangalore for assessment year 2009-10 on following grounds of appeal: “1. The order of learned CIT(A) is opposed to law and facts of the case.

2. The CIT(A) has erred in holding that the expenditure of Rs. 56,42,863/- on application software as revenue expenditure.

3. For these and such other grounds that may be urged at the time of hearing.”

2. At the time of hearing, it was brought to the knowledge of the Bench the tax effect in the appeal is below Rs.50 lakhs therefore Page 2 of 2 IT(TP)A No. 1555/Bang/2014 covered by CBDT Circular No.17/2019 Dt.8.8.2019. We find as per the CBDT Circular No.17/2019 Dt.8.8.2019, no appeal shall be filed by the Revenue before the Tribunal where the tax effect is below Rs.50 lakhs in respect of all pending appeals. In the present case, the quantum of expenditure disallowed in respect of the issues alleged by the Revenue is Rs. 56,42,863/- on which Ld.CIT(A) granted relief. Admittedly, the tax demand on the alleged issue by the Revenue is below Rs. 50 Lakhs and circular is applicable to the pending appeals. Hence we dismiss the Revenue’s appeal on maintainability due to low tax effect.

In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on 03rd February, 2022.

ASST.C.I.T., BANGALORE vs. M/S BOSCH LIMITED, BANGALORE

What did the Tribunal hold?

What were the facts?

What were the issues?

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