What did the Tribunal hold?

The ITAT dismissed the appeal filed by the Revenue due to low tax effect, following CBDT Circular No. 3/2018 and a Punjab & Haryana High Court decision. The dismissal was not an affirmation of the CIT(A)'s order on merits.

The Revenue filed an appeal before the ITAT against the order of the CIT(A). The tax effect involved in the appeal was less than Rs. 20 lacs.

What were the issues?

Whether an appeal by the Revenue should be dismissed on the grounds of low tax effect, irrespective of the merits of the case.

DCIT vs M/S Karan Sales Corporation… | ITAT Chandigarh 2019

आदेश/Order

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the Revenue against the order dated 20.04.2018 of the Commissioner of Income Tax (Appeals)- 1,Chandigarh [hereinafter referred to as CIT(A)].

At the outset, Ld. DR has submitted that the tax effect involved in the present case is less than Rs. 20 lacs and, therefore, the appeal filed by the Revenue is liable to be dismissed.

ITA No. 953-c-18 M/s Karan Sales Corporation, Ludhiana 2 3. It may be noted that CBDT vide Circular No. 3/2018 dated

11.07.2018 has revised the monetary limit upto Rs.20 lacs for filing

appeals by the Department before the Tribunal and further vide para 13

of the said Circular it has been clarified that said circular is applicable

retrospectively to the pending appeals also. The Hon’ble Punjab &

Haryana High Court in the case of “Principal CIT of Income Tax Vs.

Surinder Kumar Singhal” ITA No 406-2016 (O&M) vide order dated

30.1.2017 while further relying upon the decision of the Hon'ble

Supreme Court in the case of “CIT Vs. Dhanalekshmi Bank Ltd.” (2015)

373 ITR 526 (SC), has dismissed the appeal of the Revenue without

going into the merits due to low tax effect leaving the question of law

open. In view of the CBDT Circular No. 03/2018 (supra) and in the

light of the above referred to decision of the Hon'ble Jurisdictional

Punjab & Haryana High Court (supra), the present appeal of the Revenue

is dismissed due to low tax effect.

It is, however, clarified that the dismissal of the above appeal

shall not be taken to be affirmation of the order of the CIT(A) on merits.

The legal issue raised by the Revenue is being left open to be

adjudicated in an appropriate case.

Order pronounced in the Open Court on 04.06.2019.

Sd/- Sd/- (संजय गग� / SANJAY GARG) (एन. के. सैनी / N.K. SAINI) उपा�य� /Vice President �या�यकसद�य/ Judicial Member Dated : 10. 06 .2019 “आर.के.”

ITA No. 953-c-18 M/s Karan Sales Corporation, Ludhiana 3

आदेशक��त�ल�पअ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकरआयु�त/ CIT 4. आयकरआयु�त (अपील)/ The CIT(A) 5. �वभागीय��त�न�ध, आयकरअपील�यआ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड�फाईल/ Guard File

आदेशानुसार/ By order, सहायकपंजीकार/ Assistant Registrar

DCIT, CC-1, LUDHIANA vs. M/S KARAN SALES CORPORATION, LUDHIANA

What did the Tribunal hold?

What were the facts?

What were the issues?

Recent GST High Court judgments