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.

The Revenue filed an appeal against the order of the CIT(A) for AY 2009-10. The tax effect involved in the appeal was below Rs. 20 Lakhs.

What were the issues?

The maintainability of the appeal before the Tribunal due to the tax effect being below the revised monetary limit prescribed by the CBDT.

ACIT vs M/S. Kamdhenu Corporation | ITAT Surat 2018

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

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

Hearing: 09.08.2018

आदेश /O R D E R PER O.P.MEENA, ACCOUNTANT MEMBER: 1. This appeal filed by the Revenue is directed against the order

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

short “the CIT (A)”) dated 29.05.2012 pertaining to Assessment

Year 2009-10 which in turn has arisen from the order passed by the

Deputy Commissioner of Income Tax, Circle-6, Surat (in short “the

AO”) dated 26.11.2011 under section 143(3) of Income Tax Act,

1961 (in short ‘the Act’).

ACIT, Circle-6, Surat Vs. Kamdhenu Corporation/I.T.A. No.1846/Ahd/2012/SRT/A.Y.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.

ACIT, Circle-6, Surat Vs. Kamdhenu Corporation/I.T.A. No.1846/Ahd/2012/SRT/A.Y.2009-10 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 09-08-2018.

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: 9th Aug, 2018 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, CIRCLE-6, SURAT vs. M/S. KAMDHENU CORPORATION, SURAT

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