What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable as per the CBDT Circular No. 3/2018, which revised the monetary limit for filing appeals to Rs. 20 Lakhs. The case did not fall under any of the exceptions provided in the circular.

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

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal given the tax effect and the applicability of CBDT Circular No. 3/2018.

ITO vs M/S. Shubh Corporation | ITAT Surat 2018

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

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

Hearing: 01.11.2018

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आयकर अपीलीय अिधकरण,सुरत �यायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT �ी सी.एम.गग�, �याियक सद�य तथा �ी ओ.पी.मीना, लेखा सद�य के सम� BEFORE SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER आ.अ.सं./I.T.A No.3220/Ahd/2016/SRT िनधा�रण वष�/Assessment Year:2012-13 Income Tax Officer, Vs. Shubh Corporation, Ward- 2(3)(4) Surat Abhishek Residency No.2 Mota Varachha Surat 394180 PAN: ABVFS9009H अपीलाथ� Appellant ��यथ�/Respondent

Ashwin Parekh, CA िनधा�रती क� ओर से /Assessee by Shri Vinod Kumar, Sr. D.R. राज�व क� ओर से /Revenue by सुनवाई क� तारीख/ Date of hearing: 01.11.2018 उ�ोषणा क� तारीख/Pronouncement on 01.11.2018 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)-4, Surat dated 23.09.2016 pertaining to Assessment Year 2012-13. 2. We have heard the parties 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

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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 Rule is under challenge or (b) where Board`s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) where Revenue Audit objections has been accepted by the Department or (d) where the addition relates to undisclosed foreign assets/bank accounts, etc. and by amendment dtd. 20.08.2018 following clauses added or (e) where addition is based on information from external sources like- CBI/ED/DRI/SFIO/GST-DGGI or (f) where prosecution filed by Department is pending in Court. 3. 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 Circular (Supra) and hence dismissed. However, we may make it clear that the Revenue is at liberty to approach to this Tribunal for recalling this order, if it is comes to the notice of the AO that the tax effect is more than the monetary limit provided under Circular or Revenue`s case is fall within ambit of the exceptions provided in the said Circular. 2. In the result, the appeal of the Revenue stands dismissed. 3. The order pronounced in the open court on 01.11.2018. Sd/- Sd/- (सी.एम.गग�)/(C.M. GARG) (ओ.पी.मीना)/(O.P.MEENA) �याियक सद�य/JUDICIAL MEMBER लेखा सद�य/ACCOUNTANT MEMBER सुरत/ Surat: �दनांक /Dated : 01 November, 2018/opm Copy of order forwarded to- Assessee/AO/Pr. CIT/ CIT (A)/ITAT (DR)/ Guard file of Tribunal. By order / / TRUE COPY / / Assistant Registrar, Surat

THE ITO, WARD-2(3)(4), SURAT vs. M/S. SHUBH CORPORATION, SURAT

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