ASTT. COMMISSIONER OF INCOME TAX, LUCKNOW vs. M/S GOVIND HOTELS & INN PVT. LTD., LUCKNOW

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ITA 21/LKW/2017Status: DisposedITAT Lucknow22 February 2019AY 2009-102 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that CBDT Circular No. 3 of 2018 mandates withdrawal or non-pressing of appeals before the ITAT if the tax effect is below Rs. 20,00,000. This circular is applicable to pending appeals.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee contended that the tax effect was below the monetary limit prescribed by CBDT circulars, and thus the appeal should be withdrawn. The Revenue could not dispute the tax effect.

What were the issues?

Whether the Revenue is bound to withdraw an appeal filed before the ITAT when the tax effect is below the prescribed monetary limit as per CBDT circulars and Section 268A of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘B’, LUCKNOW

Before: SHRI A. D. JAIN & SHRI T. S. KAPOOR

For Appellant: Shri C. K. Singh, D.R
For Respondent: Shri Rakesh Garg, Advocate, Ms. Sweta Mittal, F.C.A
Hearing: 11/02/2019Pronounced: 22/02/2019

I.T.A. No.21/Lkw/2017 Assessment Year:2009-10 1

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW

BEFORE SHRI A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER

I.T.A. No.21/Lkw/2017 Assessment Year:2009-10

A.C.I.T., Vs. M/s Govind Hotels & Inn Pvt. Ltd., Central Circle-II, 23, Batashe Wali Gali, Lucknow. Aminabad, Lucknow. PAN:AADCG 0579 Q (Appellant) (Respondent)

Appellant by Shri C. K. Singh, D.R. Respondent by Shri Rakesh Garg, Advocate Ms. Sweta Mittal, F.C.A. Date of hearing 11/02/2019 Date of pronouncement 22/02/2019

O R D E R PER A. D. JAIN: V.P.

This appeal has been filed by the Revenue against the order of learned CIT(A)-3, Lucknow dated 24/10/2016 pertaining to assessment year 2009-10.

2.

During the course of hearing, the learned Counsel for the assessee submitted that tax effect involved in this appeal is less than Rs.20,00,000/-, therefore, in view of the Circular No. 3/2018 issued by the CBDT and the provisions contained in Section 268A of the Income Tax Act, 1961 (hereinafter to be referred as the Act), the Department is bound to withdraw the appeal.

3.

On the other hand, the ld. D.R., although supported the order of the Assessing Officer, but could not controvert this fact that tax effect in this appeal is less than Rs.20,00,000/-. 4. After considering the submissions of both the parties and the material available on record, it is noticed that Section 268A has been inserted by the

I.T.A. No.21/Lkw/2017 Assessment Year:2009-10 2

Finance Act, 2008 with retrospective effect from 01/04/99. The said section 268 of the Act provides that the Board may issue instruction or directions to the other income-tax authorities fixing monetary limits for not filing the appeals before the Appellate Tribunal or the Courts. The said instructions/directions are binding on the income tax authorities.

5.

It is noticed that the CBDT has issued Circular No. 3 of 2018 dated 11.07.2018, vide which it has revised the monetary limit to Rs.20,00,000/- for not filing the appeal before the Tribunal. From this circular it is clear that these instructions are applicable to the pending appeals also and as per clause 13, there is clear cut instruction to the department to withdraw or not to press the appeals filed before the ITAT wherein tax effect is less than Rs.20,00,000/-. These instructions are operative retrospectively to the pending appeals also.

6.

Keeping in view the CBDT Circular No. 3 of 2018 dated 11.07.2018 and also the provisions of Section 268A of Income Tax Act, 1961, we are of the view that the Revenue should have withdrawn the instant appeal filed before the Tribunal.

7.

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

(Order pronounced in the open court on 22/02/2019)

Sd/. Sd/. ( T. S. KAPOOR ) ( A. D. JAIN ) Accountant Member Vice President

Dated:22/02/2019 *Singh

Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. The CIT(A) 5. D.R., I.T.A.T., Lucknow

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