ACIT, CIRCLE, AZAMGARH vs. SMT. SHARMILA DEVI, DEORIA

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ITA 214/ALLD/2017Status: DisposedITAT Allahabad09 May 2019AY 2014-153 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 in limine, citing a CBDT circular that mandates no appeal should be filed or pressed if the tax effect does not exceed Rs. 20 lakhs. This circular is binding on the Department.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The assessee's representative pointed out that the tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the Revenue's appeal should be dismissed based on the tax effect threshold stipulated by CBDT circulars, even without examining the merits of the case.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, VARANASI CIRCUIT BENCH, VARANASI

Before: SHRI. A. D. JAIN & SHRI T. S. KAPOOR

For Appellant: Shri C. S. Bharti, D.R
For Respondent: Shri Ashish Bansal, Advocate

IN THE INCOME TAX APPELLATE TRIBUNAL VARANASI CIRCUIT BENCH, VARANASI BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA No.214/ALLD/2017 Assessment Year: 2014-15 ACIT v. Smt. Sharmila Devi Circle Deoria Azamgarh TAN/PAN:ACLPD4993H (Appellant) (Respondent) Appellant by: Shri C. S. Bharti, D.R. Respondent by: Shri Ashish Bansal, Advocate Date of hearing: 08 05 2019 Date of pronouncement: 09 05 2019 O R D E R PER A. D. JAIN, V.P.: This is Revenue’s appeal against the order of the ld. CIT(A), Gorakhpur, dated 15/5/2017, for the Assessment Year 2014-15. 2. At the outset, the ld. A.R. of the assessee submitted that in the appeal filed by the Revenue, the tax effect on the income in dispute is less than Rs.20 lakhs. 3. The Central Board of Direct Taxes, vide Circular No. 3/2018 dated 11th July, 2018 file no.279 of Misc.142/2007-ITJ (PT), has issued the direction in supersession of the Instruction No.21/2015 dated 10th December, 2015 in consonance with the power entrusted under section 268A of the Income Tax Act, 1961 that no appeal should be filed before the Tribunal in case the tax effect does not exceed Rs.20 lakhs. The "tax effect" in this regard means the difference between the tax on the total income assessed and the tax that would have been chargeable, had

ITA No.214/ALLD/2017 Page 2 of 3

such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. This Circular further states that tax will not include any interest thereon, unless the chargeability of interest itself is in dispute. In paragraph 13, which is reproduced as under, it has been mentioned in the Circular, that this instruction will apply even to pending appeals: "13. This instruction will apply to SLPs/appeals/cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. "

4.

The tax effect in this appeal does not exceed Rs.20 lakhs. In view of this fact, as per the CBDT Circular No. 3/2018 dated 11th July, 2018 file no.279 of Misc.142/2007-ITJ(PT), the Revenue is not supposed to press this appeal. We, therefore, dismiss the appeal filed by the Revenue in limine, without going into the merits of the case, as in our opinion, the Circular issued by the CBDT is binding on the Department in view of the provisions of Section 268A(1) of the Income Tax Act, 1961. The said view has been taken by the Hon’ble Supreme Court in the case of Navnit Lal Jhaveri vs. K. K. Sen, 56 ITR 198 (SC). We, accordingly, dismiss the appeal filed by the Revenue. 5. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 09/05/2019.

Sd/- Sd/- [T. S. KAPOOR] [A. D. JAIN] ACCOUNTANT MEMBER VICE PRESIDENT

DATED:09/05/2019 JJ:0805

ITA No.214/ALLD/2017 Page 3 of 3

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