What did the Tribunal hold?

The Tribunal held that as per CBDT Circular No. 3/2018, appeals with a tax effect below Rs. 20 Lakhs are not maintainable, unless they fall under specific exceptions. The cross-objection was dismissed as not pressed.

The Income Tax Appellate Tribunal (ITAT) Rajkot Bench heard nine appeals filed by the Revenue and one cross-objection by the assessee. The appeals involved tax effects below Rs. 20 Lakhs.

What were the issues?

The primary issue was the maintainability of appeals before the ITAT based on the monetary limit prescribed by CBDT circulars. The assessee also chose not to press their cross-objection.

The Dy. Commr. of Income Tax… vs M/S Rajani Developers Pvt. Ltd… | ITAT Rajkot 2018

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

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

Hearing: 30.11.2018

Heard together (8 matters)

I.T.A. No.302/RJT/2015

I.T.A. No.226/RJT/2015

I.T.A. No.405/RJT/2017

I.T.A. No.208/RJT/2016

I.T.A. No.351/RJT/2016

I.T.A. No.657/RJT/2014

I.T.A. No.277/RJT/2015

C.O. No.45/RJT/2015

Read from the judgment's own cause title. This page is filed under one of them.

PER BENCH:

Page 4 of 6

These nine appeals have been filed by the Revenue and the Cross Objection No.45/RJT/2015 in ITA No.277/RJT/2015 has been filed by the assessee.

We have heard the Ld. Departmental Representative and

perused the material available on record and find that tax effect

involved in these appeals are 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

Page 5 of 6 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.

We find that the present cases do not fall within the

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

Therefore, the present appeals are 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.

C.O.No.45/RJT/2015 for A.Y.2011-12 (by Assessee): 4. In the ld.Assessee’s Representative Shri D.D.Shah submitted that the assessee does not want to press Cross Objection No.45/RJT/2015 for A.Y. 2011-12, hence the same is dismissed as not pressed.

Page 6 of 6 5. In the result, all the nine appeals of the Revenue and Cross Objection of the assessee in C.O.No.45/RJT/2015 are dismissed.

The order pronounced in the open court on 30.11.2018.

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: 30th 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

THE DY. COMMR. OF INCOME TAX, CIR.-1(1), RAJKOT-GUJARAT vs. M/S RAJANI DEVELOPERS PVT. LTD., RAJKOT-GUJARAT

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