THE DCIT, COCHIN vs. M/S.POPULAR VEHICLES & SERVICES LTD, ERNAKULAM

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ITA 256/COCH/2017Status: DisposedITAT Cochin31 July 2018AY 2010-113 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the appeal, citing CBDT Circular No. 3/2018 which mandates that appeals with a tax effect below Rs. 20 lakhs should not be filed. The issues raised were left open for future proceedings.

What were the facts?

The Revenue filed an appeal before the ITAT for the assessment year 2010-2011. The tax effect in this appeal was less than Rs. 20 lakhs.

What were the issues?

Whether an appeal filed by the Revenue is maintainable before the ITAT when the tax effect is below the monetary limit prescribed by CBDT Circular No. 3/2018.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Chandra Poojari, AM & Shri George George K, JM

Hearing: 31.07.2018Pronounced: 31.07.2018

Per Chandra Poojari, AM

This appeal at the instance of the Revenue is directed against the order of the Commissioner of Income-tax (Appeals) dated 07th March, 2017. The relevant assessment year is 2010-2011.

2.

It is observed that the tax effect in this appeal is less than Rs. 20 lakhs and therefore the Circular No. 3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under Sec. 268A(1) of the I.T. Act comes into play, wherein, the monetary limit for filing the appeals by the Revenue before the ITAT and various

ITA No.256/Coch/2017. 2 M/s.Popular Vehicles & Services Limited. High Courts as well as Apex Court are revised with an object of reducing the tax litigation. Vide para 3 of the said circular (supra), it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 20 lakhs, appeal should not be filed. Thus, taking a note of CBDT Circular No. 03/2018 dated 11.07.2018 and considering the fact that the tax effect in the instant appeal is less than Rs. 20 lakhs, the present appeal deserves to be dismissed as not maintainable. However, we make it clear that the issue(s) raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal falls in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so, advised.

3.

Accordingly in the light of CBDT Circular No. 03/2018 dated 11.07.2018, the appeal stands dismissed.

4.

In the result, the appeal filed by the Revenue is dismissed.

Order pronounced on this 31st day of July, 2018.

Sd/- Sd/- (George George K) (Chandra Poojari) JUDICIAL MEMBER ACCOUNTANT MEMBER

Cochin ; Dated : 31st July, 2018. Devdas*

ITA No.256/Coch/2017. 3 M/s.Popular Vehicles & Services Limited.

Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The Pr.CIT, Kochi. 4. The CIT(Appeals)-I, Kochi. 5. DR, ITAT, Cochin 6. Guard file.

BY ORDER,

(Asstt. Registrar) ITAT, Cochin

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