What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal as not maintainable because the tax effect did not exceed the revised monetary limit specified in the CBDT circular. The Revenue can seek restoration if they can show the circular is inapplicable.

The Revenue appealed against the CIT(A)'s order deleting the disallowance of depreciation on leased assets. The assessee argued that the appeal was hit by a CBDT circular revising monetary thresholds for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable based on the tax effect and CBDT circulars regarding litigation reduction.

DCIT vs M/S. the Screndipity Apparels… | ITAT Ahmedabad 2018

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Lalit P. Jain, Sr. D.R, Shri Bandish Soparkar, A.R

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

The captioned appeal has been filed at the instance of the

Revenue against the order of the Commissioner of Income Tax

(Appeals)-8, Ahmedabad (‘CIT(A)’ in short), dated 20.12.2016

arising in the assessment order dated 18.12.2015 passed by the

ITA No.530/Ahd/17 [DCIT vs. M/s. The Serendipity Apparels Pvt. Ltd.] A.Y. 2013-14 - 2 -

Assessing Officer (AO) under s. 143(3) of the Income Tax Act,

1961 (the Act) concerning assessment year 2013-14.

The grounds of appeal raised by the Revenue reads as

under:-

“1. “Whether the Ld. CIT(Appeal) is right in law and on facts in deleting the disallowance of Rs.40,44,448/- made on account of depreciation on leased assets.”

At the time of hearing, it was submitted by the Ld.AR for

the assessee that the appeal filed by the Revenue is hit by recently

issued CBDT Circular No.3 of 2018 dated 11/07/2018 revising the

previous thresholds pertaining to tax effects. As per aforesaid

Circular, all pending appeals filed by Revenue are liable to be

dismissed as a measure for reducing litigation where the tax effect

does not exceed the prescribed monetary limit which is now

revised at Rs.20 Lakhs. In the instant case, the tax effect on the

disputed issues raised by the Revenue is stated to be not

exceeding Rs.20 lakhs and therefore appeal of the Revenue is

required to be dismissed in limine.

The Learned DR for the Revenue fairly admitted the

applicability of the CBDT Circular No. 3 of 2018. Accordingly,

appeal of the Revenue is dismissed as not maintainable. However,

ITA No.530/Ahd/17 [DCIT vs. M/s. The Serendipity Apparels Pvt. Ltd.] A.Y. 2013-14 - 3 -

it will be open to the Revenue to seek restoration of its appeal on

showing inapplicability of the aforesaid CBDT Circular in any

manner.

In the result, the appeal of the Revenue is dismissed.

This Order pronounced in Open Court on 03/12/2018

Sd/- Sd/- (MADHUMITA ROY) (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 03/12/2018 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।

THE DCIT, CIRCLE-4(1)(2), AHMEDABAD vs. M/S. THE SCRENDIPITY APPARELS PVT. LTD., AHMEDABAD

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