JOINT COMMISSIONER OF INCOME TAX LTU (OSD) CIRCLE-1, BANGALORE vs. M/S BOSCH LIMITED, BANGALORE

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ITA 1987/BANG/2018Status: DisposedITAT Bangalore05 January 2022AY 2013-142 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 on the grounds of maintainability due to low tax effect, citing CBDT Circular No. 17/2019. This circular mandates that no appeal should be filed by the Revenue before the Tribunal where the tax effect is below Rs. 50 lakhs.

What were the facts?

The Revenue filed an appeal against the order of the CIT(A) concerning the allowability of advance payment in a PLA account under excise rules as per Section 43B(a). The tax effect of the appeal was below Rs. 50 lakhs.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the Tribunal given the low tax effect, in light of the applicable CBDT circular.

Which sections of the Income-tax Act were involved?

Section 43B(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE

Before: SHRI. CHANDRA POOJARI & SMT. BEENA PILLAI

For Appellant: Shri Sumer Singh Meena
For Respondent: DR (OSD)

ORDER

PER BEENA PILLAI, JUDICIAL MEMBER Present appeal is filed by revenue against the order dated 31/03/2018 passed by Ld.CIT(A)-9, Bangalore for assessment year 2013-14 on following grounds of appeal: “1. The order of Ld.CIT(A) is opposed to law and facts of the case.

1.

2. The Ld.CIT(A) erred that the claim of the assessee towards the advance payment in PLA account under excise rules is allowable as per the provisions of Section 43B(a) as the amount is paid during the current year.

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 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 disallowance in respect of the issues alleged by the Revenue u/s. 43B(a) is Rs. 1,16,00,109/- 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.

3.

In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on 05th January, 2022.

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