INCOME TAX OFFICER, WARD-1, NIZAMABAD vs. JAGATH REDDY GADDAM, NIZAMABAD

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ITA 1529/HYD/2018Status: DisposedITAT Hyderabad30 November 2018AY 2015-162 pages
AI SummaryDismissed

What did the Tribunal hold?

The ITAT dismissed the appeal based on CBDT Circular No. 3/2018, which stipulates that appeals with a tax effect below Rs. 20 lakhs should not be filed. The Revenue is permitted to file a recall application if exceptions apply.

What were the facts?

The Revenue filed an appeal before the ITAT for AY 2015-16. The tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the tax effect and CBDT circular guidelines.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad

Before: Smt. P. Madhavi Devi & Shri S.Rifaur RahmanShri Jagath Reddy Gaddam

Hearing: 03.12.2018Pronounced: 03.12.2018

Per Smt. P. Madhavi Devi, J.M.

This is Revenue’s appeal for the A.Y 2015-16 against the order of the CIT (A)-5, Hyderabad, dated 08.05.2018.

2.

It is stated before us that the tax effect in this appeal is less than Rs.20 lakhs and therefore the Circular No. 3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under Sec. 268A(1) of the I.T. Act comes into play, wherein, the monetary limit for filing the appeals by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of reducing the tax litigation. Vide para 3 of the said circular (supra) it is stated that in cases where the tax effect in the appeals to be filed before the

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Jagath Reddy Gaddam Nizamabad.

Appellate Tribunal does not exceed Rs.20 lakhs appeals should not be filed. Thus taking a note of CBDT Circular No. 03/2018, dated 11.07.2018 and considering the fact that the tax effect in the instant appeal is less than Rs.20 lakhs, the present appeal deserves to be dismissed as not pressed/not maintainable. At the same time we also make it clear that if the appeals fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so, advised.

3.

Accordingly in the light of CBDT Circular No. 03/2018 dated 11.07.2018 the appeals of the Revenue stands dismissed. Order pronounced in the Open Court on 3rd December, 2018.

Sd/- Sd/- (S.Rifaur Rahman) (P. Madhavi Devi) Accountant Member Judicial Member

Hyderabad, dated 3rd December, 2018. Vinodan/sps

Copy to: 1 ITO, Ward-1 Nizamabad, Aayakar Bhavan, Subhash Nagar, Nizamabad 503001 2 Shri Jagath Reddy Gaddam, H.No.4-73 Perkit, Armoor, Nizamabad 503224 3 CIT (A)-5, Hyderabad 4 Pr. CIT – 5, Hyderabad 5 The DR, ITAT Hyderabad 6 Guard File

By Order

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