What did the Tribunal hold?

The Tribunal held that as per CBDT Circular No. 3/2018, appeals with a tax effect below Rs. 20 Lakhs are not maintainable, unless they fall under specific exceptions. The present case did not fall under any exception.

The Revenue filed an appeal before the ITAT against the order of the CIT(A). The tax effect involved in the appeal was below Rs. 20 Lakhs.

What were the issues?

Maintainability of the appeal due to low tax effect as per CBDT circular.

ACIT vs M/S. Auto Tuf Safety Glass, Nani… | ITAT Surat 2018

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: SHRI C.M.GARG & SHRI O.P.MEENA

Hearing: 04.10.2018

आदेश /O R D E R PER O. P. MEENA, ACCOUTANT MEMBER: 1. This appeal filed by the Revenue is directed against the order of learned Commissioner of Income Tax (Appeals), Valsad(in short “the CIT (A)”) dated 25.03.2013 pertaining to Assessment Year 2009-10 which in turn has arisen from the order passed by the Income Tax Officer, Vapi Ward-4, Daman(in short “the AO”) dated 15.12.2011 under section 143(3) of Income Tax Act,1961 (in short ‘the Act’).

ACIT, Vapi Circle, Vapi Vs. Auto Tuf Safety Glass /ITA No.1539/Ahd/2013/SRT/AY.2009-10 Page 2 of 3

We have heard the Ld. Departmental Representative and perused the material available on record and find that tax effect involved in this appeal is below Rs. 20 Lakhs. The ld. DR also did not dispute this fact. We find that the CBDT vide Circular No.3/2018 Dated 11.07.2018 [F.No.279/Misc.142/2007-ITJ (Pt)] has revised the monetary limit for filing of appeal before Tribunal fixing the tax effect limit at Rs.20 lacs. The said Circular supersedes the earlier Circular(s) issued on the subject of tax effect and applies to all pending appeal retrospectively. The Board has provided exceptions provided under para 10 of the Circular wherein it has been provided that the issues related is to be contested (a) where the Constitution validity of the provision of the Act or (b) Rule is under challenge or (c) where Board`s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or where Revenue Audit objections has been accepted by the Department or (d) where the addition relates to undisclosed foreign assets/bank accounts, etc.

We find that the present case does not fall within the exceptions clause and the tax demand is less than Rs.20 lacs. Therefore, the present appeal is not maintainable as per recent

ACIT, Vapi Circle, Vapi Vs. Auto Tuf Safety Glass /ITA No.1539/Ahd/2013/SRT/AY.2009-10 Page 3 of 3

Circular (supra) and hence the same is dismissed. However, we may make it clear that the Revenue is at liberty to approach the Tribunal for recalling this order, if it comes to the notice of the Assessing Officer that the tax effect is more than the monetary limit prescribed under Circular or Revenue`s case falls within the ambit of the exceptions provided in the Circular.

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

The order pronounced in the open court on 04-10-2018.

Sd/- Sd/- (सी.एम.गग� /C.M. GARG) (ओ.पी.मीना/O.P.MEENA) �याियकसद�यतथा/JUDICIAL MEMBER लेखासद�यकेसम� /ACCOUNTANT MEMBER सुरत/ Surat, �दनांक Dated: 4th October, 2018/S.Gangadhara Rao, Sr.PS Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order / / TRUE COPY / / Assistant Registrar, Surat

THE ACIT, VAPI CIRCLE, VAPI vs. M/S. AUTO TUF SAFETY GLASS, NANI DAMAN

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