THE ITO-WARD-3(3)(2), AHMEDABAD vs. SHRI GOVIND AMBALAL PATEL, HUF, AHMEDABAD

This appeal by the Revenue and the cross-objection thereof by the assessee are directed against the order dated 29th February 2016, passed by the learned CIT(A)-13, Ahmedabad in the matter of assessment under Section 143(3) of the Income-tax Act, 1961, for the Assessment Year 2010-11.

When this appeal was called out for hearing, learned counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the CBDT Circular No.3 of 2018 dated 11.07.2018. Learned Counsel for the assessee also submits that in the present case the tax effect is Rs.16,76,738/-, as per the working placed on record, which is below the prescribed limit of Rs.20 lacs. The learned Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.

As learned counsel rightly contends, this appeal of the Revenue is no longer maintainable in view of the CBDT Circular No. 3/2018 dated 11th July, 2018. The mandatory limit for cases in which Revenue can challenge the relief granted by the CIT(A) now stands enhanced to Rs.20 lacs. This concession granted by the Central Board of Direct Taxes (CBDT) is retrospective in effect inasmuch as it applies to all pending appeals as well. That is, of course, a welcome-change from the era of

As the appeal itself is not maintainable, the Cross-Objection filed by the assessee is also required to be dismissed as infructuous. The learned Counsel does not dispute this and, in any event, does not press the Cross-Objection.

In the result, the appeal and cross-objection, both are dismissed. Pronounced in the open court today on the 16th November, 2018