What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal based on CBDT Circular No. 3/2018, which revised the monetary limit for filing appeals. The dismissal was due to the low tax effect and not on merits.

The Revenue filed an appeal against the CIT(A)'s order for AY 2015-16. During the hearing, both parties agreed that the tax effect in the case was less than Rs. 20 lacs.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed due to a low tax effect, considering the applicability of CBDT Circular No. 3/2018.

ITO vs Sh. Nirankar Singh, Mohali | ITAT Chandigarh 2019

Income Tax Appellate Tribunal, CHANDIGARH

Before: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM

Pronounced: 15.01.2019

PER DIVA SINGH

The present appeal has been filed by the Revenue assailing the correctness of the order dated 26.04.2018 of CIT(A)-2 Chandigarh pertaining to 2015-16 assessment year on various grounds.

However, at the time of hearing, it was common stand of the parties before the Bench that the tax effect involved in the present case is less than Rs. 20 lacs. The Ld. DR has also fairly admitted that CBDT circular No. 3/2018 is applicable to this appeal, hence, 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.

ITA-933/CHD/2018 A.Y.2015-16 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 the light of the above referred to decision of the Hon'ble Juri ictional Punjab & Haryana High Court (supra), the present appeal of the Revenue is dismissed due to low tax effect.

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.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the Open Court on 15.01. 2019. ( अ"नपूणा" गु"ता ) ( "दवा "संह ) (ANNAPURNA GUPTA) (DIVA SINGH) लेखा सद"य/ Accountant Member "याय"क सद"य/ Judicial Member “पूनम” आदेश क" ""त"ल"प अ"े"षत/ Copy of the order forwarded to : 1. अपीलाथ"/ The Appellant -

""यथ"/ The Respondent - 3. आयकर आयु"त/ CIT 4. आयकर आयु"त (अपील)/ The CIT(A)

"वभागीय ""त"न"ध, आयकर अपील"य आ"धकरण, च"डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File

आदेशानुसार/ By order, सहायक पंजीकार/

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

What did the Tribunal hold?

What were the facts?

What were the issues?

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