THE ITO, WARD-1(1), RAJKOT-GUJARAT vs. M/S. HINDUSTAN TRADE OVERSEAS PVT. LTD., RAJKOT-GUJARAT

ITA 289/RJT/2014Status: DisposedITAT Rajkot15 November 2018AY 2009-103 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable as per the CBDT Circular No. 3/2018, which revised the monetary limit for filing appeals before the Tribunal to Rs. 20 Lakhs. The present case did not fall under any of the exceptions provided in the circular.

What were the facts?

The Revenue filed an appeal before the ITAT against the order of the CIT(A) for AY 2009-10. The tax effect involved in the appeal was below Rs. 20 Lakhs.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the Tribunal given the tax effect involved and the prevailing CBDT circular on monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI C.M.GARG & SHRI O.P.MEENA

Hearing: 19.11.2018

आदेश /O R D E R PER O. P. MEENA, ACCOUTANT MEMBER: 1. This appeal filed by the Revenue is directed against the order of learned Commissioner of Income Tax (Appeals), Jamnagar(in short “the CIT (A)”) dated 24.02.2014pertaining to Assessment Year 2009-10which in turn has arisen from the order passed by the Income Tax Officer, Ward-1(1), Rajkot(in short

ITO, Ward-1(1), Rajkot Vs. Hindustan Trade Overseas Pvt. Ltd./ITA No.289/RJT/2014/A.Y.2009-10 Page 2 of 3

“the AO”) dated 30.12.2011under section 143(3) of Income Tax

Act,1961 (in short ‘the Act’).

We have heard the Ld. Departmental Representative and

perused the material available on record and find that tax effect

involved in this appeal is below Rs. 20 Lakhs. The ld. DR also did

not dispute this fact. We find that the CBDT vide Circular

No.3/2018 Dated 11.07.2018 [F.No.279/Misc.142/2007-ITJ (Pt)]

has revised the monetary limit for filing of appeal before

Tribunal fixing the tax effect limit at Rs.20 lacs. The said Circular

supersedes the earlier Circular(s) issued on the subject of tax

effect and applies to all pending appeal retrospectively.The

Board has provided exceptions provided under para 10 of the

Circular wherein it has been provided that the issues related is to

be contested (a) where the Constitution validity of the provision

of the Act or (b) Rule is under challenge or (c) where Board`s

order, Notification, Instruction or Circular has been held to be

illegal or ultra vires, or where Revenue Audit objections has been

accepted by the Department or (d) where the addition relates to

undisclosed foreign assets/bank accounts, etc.

ITO, Ward-1(1), Rajkot Vs. Hindustan Trade Overseas Pvt. Ltd./ITA No.289/RJT/2014/A.Y.2009-10 Page 3 of 3

We find that the present case does not fall within the 3.

exceptions clause and the tax demand is less than Rs.20 lacs.

Therefore, the present appeal is not maintainable as per recent

Circular (supra) and hence the same is dismissed. However, we

may make it clear that the Revenue is at liberty to approach the

Tribunal for recalling this order, if it comes to the notice of the

Assessing Officer that the tax effect is more than the monetary

limit prescribed under Circular or Revenue`s case falls within the

ambit of the exceptions provided in the Circular.

In the result, the appeal of the Revenue stands dismissed.

The order pronounced in the open court on 19.11.2018.

Sd/- Sd/- (सी.एम.गग�/C.M. GARG) (ओ.पी.मीना/O.P.MEENA) �याियकसद�यतथा/JUDICIAL MEMBER लेखासद�यकेसम� /ACCOUNTANT MEMBER राजकोट/ Rajkot, �दनांक Dated: 19th November, 2018/S.Gangadhara Rao, Sr.PS Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order / / TRUE COPY / / Assistant Registrar, Rajkot

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