ITO, W-6(1), MOHALI vs. SH. NIRANKAR SINGH, MOHALI

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ITA 669/CHANDI/2018Status: DisposedITAT Chandigarh15 January 2019AY 2009-103 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Department's appeal based on the low tax effect, as admitted by the Revenue's counsel and in line with CBDT circulars and High Court precedents. The dismissal does not affirm the CIT(A)'s order on merits.

What were the facts?

The Department filed an appeal before the ITAT against the CIT(A)'s order for AY 2009-10. The Revenue's counsel admitted that the tax effect was below the monetary limit prescribed by CBDT Circular No. 3/2018 for filing appeals.

What were the issues?

Whether the Department's appeal should be dismissed due to low tax effect, considering the CBDT circular and the admitted facts.

Which sections of the Income-tax Act were involved?

Section 250(6)

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आदेश/Order Per Sanjay Garg, Judicial Member :

The present appeal has been filed by the department against the order of the Commissioner of Income Tax (Appeals)-2, Chandigarh (in short CIT(A)) dated 22.3.2018 relating to assessment year 2009-10, passed u/s 250(6) of the Income Tax Act, 1961 (in short referred to as ‘Act’).

2.

At the outset, the Ld. AR has stated that tax effect involved in the present case is less than Rs. 20 lacs,the monetary limit revised by the CBDT vide its circular No. 3/2018 dated 11.07.2018 for filing appeal to the ITAT .The Ld. DR fairly admitted to the same. During the course of hearing, the Ld. DR was specifically asked if the present

2 ITA No.669/Chd/2018 A.Y.2009-10

appeal fell within any of the exclusionary clauses mentioned

in the aforestated CBDT Circular.The Ld.DR categorically

denied the same and reiterated that the appeal be

withdrawn since it was covered by the aforesaid mentioned

CBDT Circular.

In view of the same this appeal of the Revenue is liable

to be dismissed. It may be noted that CBDT vide Circular No.

3/2018 dated 11.07.2018 has revised the monetary limit

upto Rs.20 lacs for filing appeals by the Department before

the Tribunal and further vide para 13 of the said Circular it

has been clarified that said circular is applicable

retrospectively to the pending appeals also. The Hon’ble

Punjab & Haryana High Court in the case of “Principal CIT of

Income Tax Vs. Surinder Kumar Singhal” ITA No 406-2016

(O&M) vide order dated 30.1.2017 while further relying upon

the decision of the Hon'ble Supreme Court in the case of

“CIT Vs. Dhanalekshmi Bank Ltd.” (2015) 373 ITR 526 (SC),

has dismissed the appeal of the Revenue without going into

the merits due to low tax effect leaving the question of law

open. In view of the CBDT Circular No. 03/2018 (supra) and

in view of the categorical statement of the Ld.DR that the

present appeal did not fall into any of the exclusionary

clauses of the said circular and further in the light of the

above referred to decision of the Hon'ble Jurisdictional

Punjab & Haryana High Court (supra), the present appeal of

the Revenue is dismissed due to low tax effect.

3 ITA No.669/Chd/2018 A.Y.2009-10

5.

It is, however, clarified that the dismissal of the above appeal shall not be taken to be affirmation of the order of the CIT(A) on merits. The legal issue raised by the Revenue is being left open to be adjudicated in an appropriate case.

6.

In the result, the Departmental appeal is dismissed.

Order pronounced in the Open Court.

Sd/- Sd/- अ�नपणा� ग�ता संजय गग� (ANNAPURNA GUPTA) (SANJAY GARG ) लेखा सद�य/ Accountant Member �याय�क सद�य/ Judicial Member �दनांक /Dated: 15th January, 2019 *रती* आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to :

1.

अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आय�त / CIT 4. आयकर आय�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

आदेशानसार / By order, सहायक पंजीकार/ Assistant Registrar

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