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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: SHRI RAJPAL YADAV & SHRI WASEEM AHMED
आदेश / O R D E R
PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the revenue against the appellate order of the Commissioner of Income Tax (Appeals)- 1, Rajkot [CIT(A) in short] vide appeal no.CIT(A)- I/Rjt/0069/13-14 dated 30/06/2015 arising in the assessment order passed under s.144 r.w.s. 143(3) of the Income Tax Act, 1961
ITA No.412/Rjt/2015 DCIT vs. M/s. Usha Multipack Pvt. Ltd. Asst.Year –2010-11 - 2 - (hereinafter referred to as "the Act") dated 11/03/2013 relevant to Assessment Year (AY) 2010-11.
The grounds raised by the revenue per its appeal are as under:
“1. The Hon’ble CIT(A)-Rajkot has erred in law and on the factsof the case is deleting the addition made by the AO of Rs.24,74,313/- on account of disallowance of packing expenses. 2. The Hon’ble CIT(A)-1, Rajkot has erred in law and on fact of the case in estimating the net profit @14% of turnover as against 18% estimated by the AO. 3. It is, therefore, prayed that the order of the ld CIT(A)-I Rajkot may kindly be set aside and that of the AO be restored.”
At the time of the hearing, we observe that the tax effect in the appeal filed by the Revenue is less than Rs. 20 lacs. As per the Circular No. 3 of 2018 dated 11/07/2018 issued by CBDT recently all pending appeals filed by Revenue are liable to be dismissed/ withdrawn/ not pressed with a view to reduce the litigation where the tax effect does not exceed the prescribed monetary limit, i.e., Rs.20 Lacs. The relevant extract of the circular is reproduced below: “2. In supersession of the above Circular, it has been decided by the Board that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified below.
ITA No.412/Rjt/2015 DCIT vs. M/s. Usha Multipack Pvt. Ltd. Asst.Year –2010-11 - 3 - 3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:
S. Appeals/ SLPs in Income-tax matters Monetary Limit No. (Rs.) 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1,00,00,000
The monetary limit for filing the appeals by the Revenue before the Tribunal has been increased to Rs.20 Lacs. It is also clarified in the said Circular that the said monetary limit is applicable retrospectively even to the appeals pending before the Tribunal. The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.20 lacs may be withdrawn / not pressed.
In the case on hand, it was noticed that the tax effect on the disputed issue raised by the Revenue is claimed to be less Rs.20 Lacs. Therefore appeal of the Revenue is required to be dismissed in limine in terms of the above circular.
The Ld. DR for the Revenue fairly agreed on the applicability of the CBDT Circular No. 3 of 2018. Accordingly, the appeal of the Revenue is dismissed as not maintainable. However, the Revenue is on the liberty to move the miscellaneous application to recall the order if the tax effect exceeds the threshold limit or the case of the Revenue falls in
ITA No.412/Rjt/2015 DCIT vs. M/s. Usha Multipack Pvt. Ltd. Asst.Year –2010-11 - 4 - any of the exception provided in the aforesaid CBDT Circular in any manner. The MA shall be filed within the prescribed time. Hence the appeal of the Revenue is dismissed.
In the result, the appeal of the Revenue is dismissed. This Order pronounced in Open Court on 07/09/2018
Sd/- Sd/- ¼jktiky ;kno½ ¼ ¼jktiky ;kno½ ¼ ¼jktiky ;kno½ ¼olhe vgen ¼jktiky ;kno½ ¼ olhe vgen½ ½ ½ ½ olhe vgen olhe vgen U;kf;d lnL; Yks[kk lnL; U;kf;d lnL; Yks[kk lnL; U;kf;d lnL; Yks[kk lnL; U;kf;d lnL; Yks[kk lnL; (RAJPAL YADAV) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 07/09/2018 Priti Yadav, Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)- 1, Rajkot. 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण,राजोकट/DR,ITAT, Rajkot 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, राजोकट / ITAT, Rajkot