What did the Tribunal hold?

The Tribunal held that the appeals were not maintainable as the tax effect was below the prescribed limit in the CBDT circular and did not fall under any of the exceptions. Therefore, the appeals were dismissed.

The Revenue filed five appeals against the orders of the CIT(A) for various assessment years. The assessee's counsel submitted that the appeals should be dismissed due to low tax effect, citing a CBDT circular.

What were the issues?

The primary issue was whether the Revenue's appeals were maintainable before the Tribunal in light of the low tax effect as per the CBDT circular.

ITO vs Shree Rama Multi-Tech Ltd. | ITAT Ahmedabad 2018

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Before: SHRI MAHAVIR PRASAD & SHRI AMARJIT SINGH

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

PER BENCH

These five appeals by the Revenue are directed against the order of the Ld. CIT(A)-XIV, Ahmedabad dated 15.02.2014, 21.11.2013, 21.02.2014 & 23.02.2015 pertaining to A.Ys. 1999-2000, 2005-06, 2006-07, 2008-09 & 2009- 10.

At the outset, the ld. 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 recent CBDT Circular No. 3 of 2018 dated 11.07.2018. Ld. Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.

We have heard both the parties and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of the recent CBDT Circular No. 03/2015 in F.No.279/Misc. 142/2007-ITJ (Pt) dated 11th July 2018, vide which it has been decided by the Board that no departmental appeals should be filed before the Tribunal if the tax effect by

ITA Nos.1148, 365 & 1523/A/2014 & Others 3 . A.Ys. 1999-2000, 2006-07 & 2008-09 & Ors. virtue of the Commissioner of Income-tax (Appeals)’s order is below Rs. 20 lacs. The Board has provided exceptions at clause (10) of the Instructions wherein it has been provided that these instructions will not be applicable, where the Constitutional validity of the provisions of an Act/Rule is under challenge or where Board’s order, notification, instruction or circular has been held to be illegal or where Revenue Audit objection in the case has been accepted by the Department or where the addition relates to undisclosed foreign assets/bank accounts, etc. We find that the present case does not fall within the exception clause and the tax is less than Rs.20 lacs. Therefore, the present appeal is not maintainable and hence dismissed.

In the result, all the appeals filed by the Revenue are dismissed.

Order pronounced in Open Court on 31- 08- 2018

Sd/- Sd/- (AMARJIT SINGH) (MAHAVIR PRASAD) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad: Dated 31/08/2018 Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER

Deputy/Asstt.Registrar ITAT,Ahmedabad

THE ITO, WARD-8(3), AHMEDABAD vs. SHREE RAMA MULTI-TECH LTD., AHMEDABAD

What did the Tribunal hold?

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