ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2(1), JABALPUR vs. SHRI KRITI KUMAR TIWARI, JABALPUR

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ITA 132/JAB/2018Status: DisposedITAT Jabalpur03 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 Revenue's appeal in limine, without examining the merits, based on the CBDT circular and Section 268A of the Income Tax Act. The assessee's cross objection was dismissed as withdrawn.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee's representative submitted that the tax effect in the appeal was less than Rs. 20 lakhs. The CBDT Circular No. 3/2018 directs that appeals with a tax effect below Rs. 20 lakhs should not be filed or pressed.

What were the issues?

Whether the Revenue's appeal should be dismissed due to low tax effect as per CBDT circulars, and whether the circular is binding on the department.

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 L. L. Sharma, Advocate
For Respondent: Shri P. D. Chougale, D.R, Shri L. L. Sharma, Advocate

Heard together (2 matters)

C.O. No.14/JAB/2018
ITA No.132/JAB/2018

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SHRI A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA No.132/JAB/2018 Assessment Year:2015-16 Asstt. C.I.T. v. Shri Kirti Kumar Tiwari Circle 2(1) 267, Garha Pahatak Jabalpur Jabalpur TAN/PAN:ACWPT4759P (Appellant) (Respondent) C.O. No.14/JAB/2018 [In ITA No.132/JAB/2018] Assessment Year:2015-16 Shri Kirti Kumar Tiwari v. Asstt. C.I.T. 267, Garha Pahatak Circle 2(1) Jabalpur Jabalpur TAN/PAN:ACWPT4759P (Cross Objector) (Respondent) Department by: Shri P. D. Chougale, D.R. Assessee by: Shri L. L. Sharma, Advocate Date of hearing: 02 04 2019 Date of pronouncement: 03 04 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)-1, Jabalpur, dated 27/3/2018, for the Assessment Year 2015-16. The assessee has filed cross objection. 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.

ITA No.132/JAB/2018 & C.O. No.14/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 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.

ITA No.132/JAB/2018 & C.O. No.14/JAB/2018 Page 3 of 3 5. At the time of hearing, the ld. A.R. of the assessee has also made a request to withdraw the cross objection filed on behalf of the assessee. Considering the request of the ld. A.R. of the assessee, the cross objection of the assessee is dismissed as withdrawn. 6. In the result, the appeal filed by the Revenue and the cross objection filed by the assessee stand dismissed. Order pronounced in the open Court on 03/04/2019.

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

DATED:03/04/2019 JJ:0204

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