DCIT, CIRCLE-1(2), HYDERABAD, HYDERABAD vs. BIMCO ELECTRICAL PRODUCTS PRIVATE LIMITED, HYDERABAD, HYDERABAD

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ITA 973/HYD/2017Status: DisposedITAT Hyderabad06 August 2018AY 2007-082 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal, in light of CBDT Circular No. 3/2018, dismissed the appeal as not pressed/maintainable due to the low tax effect. The issues raised were left open for future examination.

What were the facts?

The Revenue filed an appeal before the ITAT against the order of the CIT(A) for AY 2007-08. The tax effect in the appeal was less than Rs. 20 lakh.

What were the issues?

Whether an appeal filed by the Revenue before the ITAT should be dismissed if the tax effect is below the monetary limit prescribed by CBDT circulars.

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 BENCH “B”, HYDERABAD

Before: SMT. P. MADHAVI DEVI & SHRI INTURI RAMA RAO

For Appellant: Shri M.S. Dayakar
For Respondent: Shri Nilanjan Dey, DR, Shri M.S. Dayakar
Hearing: 06.08.2018

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “B”, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA No. 973/Hyd/2017 Assessment Year: 2007-2008 DCIT, Circle-1(2), Vs. Bimco Electrical Products Hyderabad. Private Limited, Hyderabad. PAN: AAACB 8279 R (Appellant) (Respondent) Revenue by: Shri Nilanjan Dey, DR Assessee by: Shri M.S. Dayakar Date of hearing: 06.08.2018 Date of pronouncement: 06th August, 2018 ORDER PER INTURI RAMA RAO, A.M.: This appeal filed by the revenue is directed against the order dated 07.02.2017 of CIT(A)-1, Hyderabad for A.Y. 2007-08.

2.

It is stated before us that the tax effect in this appeal is less than Rs.20 lakh 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 the 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 Appellate Tribunal does not exceed Rs.20 lakh, the 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 lakh, the present appeal deserves to be dismissed as not pressed/not maintainable. However, we make it clear that the issues raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal falls 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 appeal stands dismissed. Pronounced in the open Court on 06th August, 2018.

Sd/- Sd/- (P. MADHAVI DEVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated:06th August, 2018 OKK Copy to:- 1) DCIT, Circle-1(2), B-Block, 7th Floor, I.T. Towers, A.C. Guards, Masab Tank, Hyderabad. 2) Bimco Electrical Products Private Limited, Plot No.64A, SBH Colony, Venture II, LB Nagar, Hyderabad. 3) The CIT(A)-1, Hyderabad 4) The Pr. CIT-1, Hyderabad 5) The DR, ITAT, Hyderabad 6) Guard File

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