DEPUTY COMMISSIONER OF INCOME TAX (CENTRAL), JABALPUR vs. SHRI NEERAJ SHARMA, JABALPUR

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ITA 76/JAB/2018Status: DisposedITAT Jabalpur01 April 2019AY 2015-163 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 appeals filed by the Revenue in limine. This was based on the CBDT Circular No. 3/2018, which directs that no appeal should be filed before the Tribunal if the tax effect does not exceed Rs. 20 lakhs.

What were the facts?

The Revenue filed appeals against the orders of the CIT(A) for assessment years 2013-14 and 2015-16. The assessee pointed out that the tax effect in these appeals was less than Rs. 20 lakhs.

What were the issues?

Whether the Revenue's appeals should be dismissed based on the CBDT circular regarding tax effect, even if the merits of the case were not considered.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, JABALPUR BENCH, JABALPUR

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

For Appellant: Shri Rahul Bardia, C.A
For Respondent: Shri P. D. Chougale, D.R, Shri Rahul Bardia, C.A

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SHRI A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER IT(SS)A No.15/JAB/2018 Assessment Year:2013-14 Dy. C.I.T. (Central) v. Shri Neeraj Sharma Jabalpur 765, Anand Cinema Road Napier Town, Jabalpur TAN/PAN:ASKPS5959G (Appellant) (Respondent) ITA No.76/JAB/2018 Assessment Year:2015-16 Dy. C.I.T. (Central) v. Shri Neeraj Sharma Jabalpur 765, Anand Cinema Road Napier Town, Jabalpur TAN/PAN:ASKPS5959G (Appellant) (Respondent) Department by: Shri P. D. Chougale, D.R. Assessee by: Shri Rahul Bardia, C.A. Date of hearing: 01 04 2019 Date of pronouncement: 02 04 2019 O R D E R PER A. D. JAIN, V.P.: These appeals have been filed by the Revenue against separate orders of the ld. CIT(A)-I, Jabalpur, both dated 10/1/2018 for the assessment years 2013-14 and 2015-16. 2. At the outset, the ld. A.R. of the assessee submitted that in these appeals filed by the Revenue, the tax effect on the income in dispute is less than Rs.20 lakhs.

IT(SS)A No.15/JAB/2018& ITA No.76/JAB/2018 Page 2 of 3 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 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 each of these appeals 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 these appeals. We, therefore, dismiss the appeals 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 Departmental Authorities 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

IT(SS)A No.15/JAB/2018& ITA No.76/JAB/2018 Page 3 of 3 Supreme Court in the case of Navnit Lal Jhaveri vs. K. K. Sen, 56 ITR 198 (SC). We, accordingly, dismiss the appeals filed by the Revenue. 5. In the result, both the appeals filed by the Revenue stand dismissed. Order pronounced in the open Court on 02/04/2019.

Sd/- Sd/- [T. S. KAPOOR] [A. D. JAIN] ACCOUNTANT MEMBER VICE PRESIDENT DATED:02/04/2019 JJ:0104 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR

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