THE ITO, WARD - 5(3), MORBI vs. SHRI DR. KAMLESH GOPALBHAI PATEL, MORBI

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ITA 204/RJT/2011Status: DisposedITAT Rajkot10 August 2018AY 2006-073 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 due to a CBDT circular restricting appeals with a tax effect below Rs. 20 lakhs. The circular was made applicable retrospectively to pending appeals.

What were the facts?

The Revenue filed an appeal for Assessment Year 2006-07 against an order of the CIT(A). The appeal was filed in 2011.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal based on the monetary limit prescribed by CBDT Circular No. 3/2018.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: Shri Rajpal Yadav & Shri Amarjit Singh

For Appellant: Shri M.J. Ranpura, A.R
For Respondent: Shri C.P. Bhatia, Sr. D.R, Shri M.J. Ranpura, A.R

PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-

This Revenue’s appeal for A.Y. 2006-07, arises from order of the CIT(A)- IV, Rajkot dated 15-03-2011, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.

2.

At the outset, after going through the grounds of appeal and the impugned orders of the Revenue authorities below, a query was raised by the Bench as to applicability and maintainability of the appeal filed by the Revenue in view of recent CBDT Circular No.3/2018 dated 11.7.2018 restricting the filling of the appeal by the Revenue where the tax effect is below Rs.20 lakhs, the ld. DR did not dispute the same and submitted that the issue is left to the Tribunal to be decided in accordance with law.

I.T.A No. 204/Rjt/2011 A.Y. 2006-07 Page No 2 No.F.No.279/Misc.142/2007-ITJ(Pt) prohibiting its subordinate authorities from filing of the appeal to the Tribunal against the order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.20 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present case, “tax effect” on the total income assessed minus the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal is filed, is less than Rs.20 lakhs. Further, the case of the Revenue does not fall within the ambit of exceptions provided in the Circular. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed.

However, it is observed that in case on re-verification at the end of the AO it comes to the notice that the tax effect is more or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect.

4.

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

Order pronounced in the open court on 10-08-2018 (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 10/08/2018

I.T.A No. 204/Rjt/2011 A.Y. 2006-07 Page No 3 आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:-

1.

Assessee

2.

Revenue

3.

Concerned CIT

4.

CIT (A)

5.

DR, ITAT, Ahmedabad

6.

Guard file. By order,

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