THE ACIT, CORP CIRCLE-291), KOCHI-18, KOCHI vs. M/S.PRUDENT TECHNOLOGIES P. LTD, KOCHI

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ITA 501/COCH/2017Status: DisposedITAT Cochin04 September 2018AY 2014-153 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal as not maintainable due to the low tax effect, citing CBDT Circular No. 3/2018. The assessee's cross-objection was dismissed as infructuous.

What were the facts?

The Revenue filed an appeal before the ITAT, but the tax effect was less than Rs. 20 lakhs. The assessee also filed a cross-objection supporting the CIT(A)'s order.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT based on 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: 04.09.2018Pronounced: 04.09.2018

Heard together (2 matters)

ITA No.501/Coch/2017
CO No.21/Coch/2018

Read from the judgment's own cause title. This page is filed under one of them.

Per George George K, JM

This appeal at the instance of the Revenue and cross objection by the assessee, are directed against the order of the Commissioner of Income-tax (Appeals)-I, Kochi, dated 12.06.2017. The relevant assessment year is 2014-2015.

ITA No.501/Coch/2017 2 CO No.21/Coch.2018. M/s.Prudent Technologies (P) Ltd. 2. It is observed that the tax effect in the appeal filed by the Revenue 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 appeal(s) by the Revenue before the ITAT and various 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 fall 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.

The Cross Objection filed by the assessee is supportive of the order of the CIT(A), is dismissed as infructuous.

ITA No.501/Coch/2017 3 CO No.21/Coch.2018. M/s.Prudent Technologies (P) Ltd. 5. In the result, the appeal filed by the Revenue and the cross objection filed by the assessee, are dismissed.

Order pronounced on this 04th day of September, 2018.

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

Cochin ; Dated : 04th September, 2018. Devdas*

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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