THE ITO-5(1), INDORE vs. M/S. SANGHVI METAL PROCESSING AND MANUFACTURING PVT. LTD., INDORE

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ITA 416/IND/2017Status: DisposedITAT Indore18 July 2018AY 2008-094 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal without going into the merits of the case. This was based on the fact that the tax effect of Rs. 10,65,123/- was below the monetary limit of Rs. 20 lacs prescribed by CBDT Circular No. 3/2018 for filing appeals.

What were the facts?

The Revenue appealed an order from the CIT(A) which had deleted an addition of Rs. 51,70,500/- made on account of LTCG from sale of agricultural land. The assessee argued the appeal should be dismissed due to low tax effect as per CBDT Circular No. 3/2018.

What were the issues?

Whether the appeal filed by the Revenue is liable to be dismissed on account of low tax effect as per CBDT Circular No. 3/2018. Whether the sale of agricultural land was liable to tax as LTCG or stock-in-trade.

Which sections of the Income-tax Act were involved?

Section 144,Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: Shri Kul Bharat, Hon’ble & Shri Manish Borad, Hon’ble

For Appellant: Shri B.J. Boricha, Sr.DR
Hearing: 24.7.2018Pronounced: 26.7.2018

per this circular department shall not file the appeal before the

Income Tax Appellate Tribunal (ITAT) in case the effect of tax does

not exceed the monetary limit of Rs.20 lacs. It is further specified

Sanghvi Metal Processing and Manufacturing Pvt.Ltd ITA 416/Ind/2017 in Para 13 of the CBDT Circular No.3/2018 that the circular will

also apply retrospectively on all the pending appeals/cross

objections if the tax effect is below the specified tax limit and such

appeals shall be withdrawn/not processed. It is also accepted by

both the parties that the issue raised in this appeal does not fall in

any of the exceptions provided in para 10 of the circular. We

therefore without going in to the merits of the case, dismiss the revenue’s appeal in lemine on account of low tax effect.

5.

In the result appeal of the revenue is dismissed.

Order pronounced in open Court on 26 July, 2018.

Sd/- Sd/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER July 26 , 2018 /Dev

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