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Income Tax Appellate Tribunal, SURAT– BENCH ‘SURAT
Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGH
आयकर अपील�य अ�धकरण। IN THE INCOME TAX APPELLATE TRIBUNAL SURAT– BENCH ‘SURAT BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER आयकर अपील सं./ ITA.No.47/Ahd/2014 �नधा�रण वष�/ Asstt. Year: 2007-08 ITO, Ward-4(4) Vs. M/s.Veekay Prints P.Ld. Surat. 210, Nr.Mahalaxmi Dyeing Kadodara, Tal. Palsana, Surat. PAN: AAACV 9663 K अपीलाथ�/ (Appellant) �� यथ�/ (Respondent) Revenue by : Smt.Smita Nair, Sr.DR Assessee by : Shri Rasesh Shah, CA सुनवाई क� तार�ख/Date of Hearing : 13/11/2018 घोषणा क� तार�ख /Date of Pronouncement: 13/11/2018 आदेश/O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER:
Revenue is in appeal before the Tribunal against order of ld.CIT(A)-III, Ahmedabad dated 1.10.2013 passed for the Asstt.Year 2007-08.
In the grounds of appeal, Revenue has challenged deletion of addition of Rs.57,29,958/- made by the AO on account of bogus purchases.
At the very outset, the ld.counsel for the assessee has drawn our attention towards recent CBDT Circular restricting filing of appeal by the Revenue before the Tribunal where tax effect is below Rs.20 lakhs. He pointed out that tax effect in the present case is below monetary limit prescribed by the CBDT, and therefore, appeal of the Revenue is liable to be dismissed at the threshold.
ITA No.47/Ahd/2014 2 He filed a calculation sheet demonstrating tax effect in the impugned addition being below Rs.20 lakhs. It reads as under:
Particulars Amount Total addition disputed by 57,29,958/- Revenue (A) Basic Tax Rate 30.00% Surcharge 10.00% Educational cess 2.00% MAXIMUM MARGINA RATE (B) 33.66% TAX EFFECT INVOLVED = A x B 19,28,704/- 4. When the Bench pointed out to the ld.DR about maintainability Revenue’s appeal before the Tribunal in view of recent CBDT circular cited by the ld.counsel for the assessee, the ld.DR was unable to dispute the same and tax effect calculated by the assessee, but left to Tribunal to decide the appeal in accordance with law.
We have heard ld.DR and gone through the impugned orders. We find that appeal of the Revenue, which is filed on 8.1.2014 is hit by recent CBDT instruction no.3 of 2018 dated 11.08.2018 whereby the Board has prohibited its subordinate authorities from filing of the appeal before 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, the tax effect on the disputed addition does not exceed Rs.20 lakhs, which has not been disputed by the ld.DR. Therefore, the present appeal of the Revenue is hit by the CBDT Circular and hence not maintainable. Further, ld.DR has not pointed out whether the case of the Revenue fall within the ambit of exceptions provided in the Circular or not. Thus, keeping in view the above CBDT circular and provisions of section
ITA No.47/Ahd/2014 3 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.
In the result, appeal of the Revenue is dismissed due to low tax effect Order pronounced in the Court on 13th November, 2018 at Surat.
Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER
ITA No.47/Ahd/2014 4
Surat; Dated 13/11/2018 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) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण / DR, ITAT, 6. गाड� फाईल / Guard file. देशानुसार/ BY ORDER,
उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Surat
Date of dictation- 13-11-2018 2. Date on which the typed draft is placed before the Dictating Member 13-11-2018 3. Date on which the approved draft comes to the Sr.P.S./P.S. - 4. Date on which the fair order is placed before the Dictating Member for Pronouncement ……………….. 5. Date on which the file goes to the Bench Clerk .. : 14-11-2018 6. Date on which the file goes to the Head Clerk……………………………. 7. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. Date of Despatch of the Order………………