THE ACIT, CIRCLE-7, SURAT vs. M/S. C.B. SURATWALA & SONS, SURAT

ITA 1515/AHD/2012Status: DisposedITAT Surat22 August 2018AY 2004-054 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 as per CBDT Circular No. 3/2018, which revised the monetary limit for filing appeals to the Tribunal to Rs. 20 Lakhs. The case did not fall under any of the exceptions provided in the circular.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for Assessment Year 2004-05. The tax effect involved in the appeal was below Rs. 20 Lakhs.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT due to the tax effect being below the revised monetary limit prescribed by CBDT circular.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 254

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

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

For Respondent: Shri S.R.Meena – Sr.DR

Heard together (2 matters)

I.T.A. No.1515/Ahd/2012

CO.No.144/Ahd/2012

Read from the judgment's own cause title. This page is filed under one of them.

आदेश /O R D E R PER O.P.MEENA, ACCOUNTANT MEMBER: 1. This appeal filed by the Revenue and Cross Objection by the

assessee is directed against the order of learned Commissioner of

Income Tax (Appeals)–V, Surat (in short “the CIT (A)”) dated

28.03.2012 pertaining to Assessment Year 2004-05 which in turn

has arisen from the order passed by the Assistant Commissioner of

Income Tax, Circle-7, Surat (in short “the AO”) dated 29.12.2011

under section 143(3) r.w.s 254 of Income Tax Act,1961 (in short

‘the Act’).

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

C.B.Suratwala & Sons Vs. ACIT, Circle-7 /I.T.A. No.1515/Ahd/2012/SRT/2004-05 & CO.No.144/Ahd/2012 Page 3 of 4

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

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

C.B.Suratwala & Sons Vs. ACIT, Circle-7 /I.T.A. No.1515/Ahd/2012/SRT/2004-05 & CO.No.144/Ahd/2012 Page 4 of 4

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.

C.O.No.144/Ahd/2012/SRT for AY 2004-05 (by Assessee) 5. Since, by the earlier part of this order we have dismissed the appeal of the Revenue, therefore, Cross Objection of the assessee becomes infructuous, accordingly we dismiss the same as not pressed. 6. In the result, Cross Objection of the assessee is dismissed as not pressed. 7. Finally, appeal of the Revenue is dismissed and cross objection of the assessee is dismissed as not pressed. 8. The order pronounced in the open court on 23-08-2018.

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: 23rd Aug, 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

Recent GST High Court judgments

Search GST case law →