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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
PER ANIL CHATURVEDI, AM :
This appeal filed by the Revenue is emanating out of the order of Commissioner of Income Tax (A) – III, Pune dated 26.02.2014 for the assessment year 2010-11.
The relevant facts as culled out from the material on record are as under :-
Assessee is a Co-operative Society stated to be engaged in the business of manufacturing and sale of sugar and its by-products. Assessee electronically filed its return of income for A.Y. 2010-11 on 23.09.2010 declaring total income of Rs. Nil. The case was
selected for scrutiny and thereafter assessment was framed u/s
143(3) of the Act vide order dated 24.12.2012 and the total income
was determined at Rs.49,64,91,360/-. Aggrieved by the order of
AO, assessee carried the matter before Ld.CIT(A) who vide order
dt.26.02.2014 (in appeal No.PN/CIT(A)-III/ACIT, Cir-1/Sol/253/
2012-13) granted partial relief to the assessee. Aggrieved by the
order of Ld.CIT(A), Revenue is now in appeal before us and has
raised the following grounds :
“1. Whether on the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in deleting the addition made by the Assessing Officer on account of sale of sugar at concessional rate at Rs.33,75,000/- to its members and non-members. 2. The order of the CIT(A) be vacated and that of the AO be restored.”
Before us, at the outset, Ld.A.R. submitted that the appeal of
the Revenue is not maintainable on account of low tax effect and
therefore, the appeal of the Revenue be dismissed. Ld.D.R. did not
object to the aforesaid contention made by the Ld.A.R.
We have heard the rival submissions and perused the
material available on record. On perusing the grounds of appeal
raised by the Revenue, we find that Revenue is aggrieved by the
order of ld. CIT(A) in respect of the relief given by him. As per the
recent announcement of Central Board of Direct Taxes (CBDT)
dated 11.07.2018 (Circular No. 3 of 2018), no Department appeals
are to be filed against relief given by ld. CIT(A) before the Income
Tax Appellate Tribunal unless the tax effect, excluding interest,
exceeds Rs.20 lakhs and it further states that the instructions will
apply retrospectively to the pending appeals also. In the present
case, since it is an undisputed fact that on the addition which is in dispute, the tax effect is less than Rs.20 lakhs and in the absence of any material placed on record by the Revenue to demonstrate that the issue in the present appeal is covered by exceptions provided in para 10 of the aforesaid CBDT Circular, we are of the view that the monetary limit prescribed by the instructions of the aforesaid CBDT Circular would be applicable to the present appeal of the Department. We therefore hold the present appeal of Revenue to be not maintainable on account of low tax effect and accordingly dismiss the appeal of Revenue without expressing any opinion on merits of the case. However, in case there is any error in the computation of the tax effect involved or if for any reason, the aforesaid CBDT Circular is not applicable, it would be open to the Revenue to seek revival of the appeal. Thus, the grounds of the Revenue are dismissed.
In the result, the appeal of Revenue is dismissed.
Order pronounced in open Court on 19th day of March, 2019.
Sd/- Sd/- (SUSHMA CHOWLA) (ANIL CHATURVEDI) �या�यक सद�य / JUDICIAL MEMBER लेखा सद�य / ACCOUNTANT MEMBER
पुणे Pune; �दनांक Dated : 19th March, 2019. Yamini
आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent 3. The CIT(A)-III, Pune. The CIT-IV, Pune. 4 �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “ए” / DR, 5. ITAT, “A” Pune; 6. गाड� फाईल / Guard file.
आदेशानुसार/ BY ORDER
// True Copy // व�र�ठ �नजी स�चव / Sr. Private Secretary आयकर अपील�य अ�धकरण ,पुणे / ITAT, Pune.