Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI WASEEM AHMED
आदेश/O R D E R PER BENCH:
The above appeals are filed by the Revenue against the orders of ld.Commissioner Income-Tax (Appeals) involving respective assessment years. Upon receipt of notice on the Revenue’s appeals, some of the assessees’ mentioned in the cause-title have also filed cross objections.
The Central Board of Direct Taxes vide Circular No. 3 of 2018 dated 11.7.2018 has raised threshold monetary limits for filing Departmental Appeals before the Appellate Tribunals. Accordingly, the CBDT has instructed the Department not to file appeals before the Income Tax Appellate Tribunal where tax effect including surcharge is below Rs.20.00 lakhs. This circular is applicable to the pending appeals also. Accordingly, Registry of the Tribunal identified appeals filed by the Revenue where tax effect is below Rs.20.00 lakhs. A List of such appeals was accordingly prepared and furnished well in advance to the Department as well as to the ITAT Bar Association. A copy of such list was also placed on the notice board. Out of the above identified cases, 245 appeals as per the above cause-title are accordingly placed before this Bench to decide applicability of the above circular in the present cases.
ITA No.2233/Ahd/2016 and Other (CBDT Circular No3 of 2018 -25- 3. In this behalf, when a query was raised by the Bench, the ld.Departmental Representatives though, in principle, did not dispute the applicability of the above CBDT circular in the present cases, but submitted that liberty may be given to the Department to apply for recall the order in such cases where tax effect, on further verification of the record, is found to be more than Rs.20 lakhs, or such cases which are mistakenly listed and summarily dismissed due to low taxes. The ld.counsels appearing for the assessees though argued for dismissal of the appeals of the Revenue in accordance with the above CBDT Circular, but agreed to the proposition put forth by the ld.DR.
We find that on 11.7.2018 the CBDT has issued Instructions bearing No. 3 of 2018 under file No.F.No.279/Misc.142/2007-ITJ(Pt) prohibiting its subordinate authorities from filing of the appeal to the Tribunal against the order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.20 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present cases, “tax effect” on the total income assessed minus the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal is filed, is less than Rs.20 lakhs. Further, it has not been pointed out to us, whether any of the cases of the Revenue fall within the ambit of exceptions provided in the Circular. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present
ITA No.2233/Ahd/2016 and Other (CBDT Circular No3 of 2018 -26- appeals of the Revenue deserve to be dismissed. They are accordingly dismissed.
However, it is observed that in case on re-verification at the end of the AO it can be demonstrated that the tax effect is more, or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order relatable to such cases. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeals of the Revenue are dismissed due to low tax effect.
Though the ld.counsel for the assessees have not pressed their respective cross objections, and as a result, they stand dismissed, but liberty is also given to the assessees to move application for revival of its CO filed in such appeals of the Revenue which are restored for adjudication.
In the result, all the appeal of the Revenue and Cross Objections of the assessees are dismissed due to low tax effect.
Order pronounced in the Court on 30th July, 2018 at Ahmedabad.
Sd/- Sd/- (WASEEM AHMED) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER
Ahmedabad; Dated 30/07/2018