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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 734/JP/2018
PER VIJAY PAL RAO, J.M.
This appeal by the Revenue is directed against the order dated 23.03.2018 of CIT (A)-2, Jaipur, for the assessment year 2013-14. The Revenue has raised the following grounds:-
“ 1) Whether on the facts and in the circumstances of the case, the CIT (A) is justified in restricting the N.P from 15% to 10% which has resulted in determination of income less than the income shown by the assessee in the return. 2) The appellant craves its rights to add, amend or alter any of the grounds on or before the hearing.”
2 ITA No. 734/JP/2018 Shree Balaji Enterprises, Jaipur.
At the time of hearing, the ld. AR of the assessee has raised an objection of
maintainability of the appeal of the Revenue due to the tax effect not exceeding Rs. 20 lacs as per the CBDT Circle No. 3 of 2018 dated 11th July, 2018. The ld. A/R
submitted that in the facts of the present case, tax effect in Revenue’s appeal is
stated to be Rs. 18.18 lakhs which is below the prescribed limit of Rs 20 lacs.
2.1. The ld. D/R has fairly submitted that the tax effect involved in the Revenue’s
appeal is less than 20 lacs which is prescribed threshold limit in terms of the CBDT Circular No. 3/2018 dated 11th July, 2018 issued in supersession of its earlier Circular
No. 21 of 2015 dated 10.12.2015.
We have heard the rival contentions and perused the materials available on
record. We may clarify that the relief granted by the ld. CIT (A) restricting the net
profit from 15% to 10% would not affect the returned income of the assessee and
hence the impugned order of the ld. CIT (A) would not have the effect of reducing
the returned income. It is observed that the demand/ tax effect in the Revenue’s appeal in question is below Rs. 20.00 lacs. Under the powers vested by section.
268A(1) of the I T Act, CBDT has recently issued Circular No. 3/2018 dated 11th July, 2018 (F No. 279/Misc. 142/2007-ITJ(Pt) instructing the
authorities below that departmental appeal should not be filed before
ITAT where the demand/tax effect does not exceed Rs. 20 lacs. The
circular is specifically mentioned to be applicable for all pending appeals.
Subject to some exceptions, it is further directed by CBDT that all the
departmental appeals pending before ITAT where the demand/tax effect is not
3 ITA No. 734/JP/2018 Shree Balaji Enterprises, Jaipur.
exceeding than 20 lacs should be either withdrawn or not pressed by the
departmental representatives.
The present appeal is not covered by any exceptions mentioned in the said
CBDT circular. Since the tax demand in dispute in this departmental appeal is below
the limit set out by CBDT for the appeal, the appeal of the assessee is not
maintainable in view of CBDT Circular No. 3 of 2018 dated 11.07.2018. Accordingly
the appeal of the Department is dismissed as not pressed/withdrawn.
3.0 In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court on 03/08/2018.
Sd/- Sd/- (foØe flag ;kno) (fot; iky jkWo ½ (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member
Jaipur Dated:- 03/08/2018. Das/
आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू
The Appellant- The DCIT, Circle-5, Jaipur. 2. The Respondent – M/s. Shree Balaji Enterprises, Jaipur. 3. The CIT(A). 4. The CIT, 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 734/JP/2018) vkns'kkuqlkj@ By order,
सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत
4 ITA No. 734/JP/2018 Shree Balaji Enterprises, Jaipur.