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 the Tribunal to Rs. 20 Lakhs. The present 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) 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 appeal due to the tax effect being below the revised monetary limit prescribed by the CBDT circular.

DCIT vs M/S. Gujarat Jhm Hotels Ltd. | ITAT Surat 2018

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

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

Hearing: 21.08.2018

आदेश /O R D E R PER BENCH: 1. This appeal filed by the Revenue is directed against the order

of learned Commissioner of Income Tax (Appeals)–1, Surat(in short

“the CIT (A)”) dated 26.02.2015 pertaining to Assessment Year

2004-05 which in turn has arisen from the order passed by the

Deputy Commissioner of Income Tax, Circle-1(1)(2), Surat (in short

“the AO”) dated 20.01.2014 under section 143(3) r.w.s.254 of

Income Tax Act,1961 (in short ‘the Act’).

ACIT, Circle-1(1)(2) Vs. Gujarat JHM Hotels Ltd./I.T.A. No.1289/Ahd/2015/SRT/AY.2004-04 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.

ACIT, Circle-1(1)(2) Vs. Gujarat JHM Hotels Ltd./I.T.A. No.1289/Ahd/2015/SRT/AY.2004-04 Page 3 of 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 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 21-08-2018.

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: 21st 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

THE DCIT, CIRCLE-1, SURAT vs. M/S. GUJARAT JHM HOTELS LTD., SURAT

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments