What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal due to low tax effect, as per CBDT circulars. The assessee's cross-objection was rendered infructuous as a consequence.

The Revenue filed an appeal against the CIT(A)'s order for AY 2014-15. The assessee filed a cross-objection arguing the appeal was not maintainable due to low tax effect. The assessee did not appear for the hearing.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect as per CBDT circulars.

DCIT vs Warana Industries Ltd, Kolhapur | ITAT Pune 2022

Income Tax Appellate Tribunal, PUNE “B” BENCH, PUNE

Before: SHRI S. S. GODARA & SHRI G. D. PADMAHSHALI

For Respondent: Shri M.G. Jasnani

Pronounced: 06/10/2022

Heard together (2 matters)

ITA No.1612/PUN/2019

CO No. 39/PUN/2022

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

Warana Industries Ltd. CO No.39/PUN/2022 PAN : AAACW1694H AY: 2014-15 आदेश / ORDER PER G. D. PADMAHSHALI, AM; By the present appeal, the Revenue challenged the order of Commissioner of Income Tax (Appeals)-1, Kolhapur [for short “CIT(A)”] dt. 25/07/2019 passed u/s 250 of the Income-tax Act, 1961 [for short “the Act”], which soared out of assessment order dt. 26/12/2017 passed u/s 143(3) by the Asst. Commissioner of Income Tax, Circle-1, Kolhapur [for short “AO”] for assessment year [for short “AY”] 2014-15 and whereas the assessee has filed a Cross Objection [for short “CO”] thereagainst claiming the appeal of Revenue as not maintainable for the reason of low tax effect [for short “LTE”].

When the case was called up for physical hearing, none represented the assessee, bearing in mind contents of CO, in the interest of justice we proceeded u/r 24 of the ITAT-Rules, to adjudicate the matters ex-parte on merits, which empowers this Tribunal to decide the appeal filed by the appellant ex–parte on merits where the appellant does not appear in person or through an authorised representative and the same is done placing on record a ITAT-Pune Page 2 of 4

Warana Industries Ltd. CO No.39/PUN/2022 PAN : AAACW1694H AY: 2014-15 no-objection from the learned departmental representative [for short “DR”] who without going into facts and grounds of appeal raised, entreated that the appeal of the revenue falls below the tax effect within the purview of Central Board of Direct Taxes [for short “CBDT”] Circular 17/2019 r.w. Circular 3/2018, however it is prayed that, a liberty should be given to Revenue to contest this appeal at any subsequent stage for the reasons stipulated in the foresaid circular by filing a Miscellaneous Application [for short “MA”] before the Tribunal to revive this appeal for an order of recalling.

3. Undisputedly the tax effect in the present appeal filed by the Revenue is below ₹50 Lakhs, and mindful to para 13 of the CBDT Circular No. 3/2018 r.w.c. 17/2019, we are inclined to dismiss this appeal due to “LTE”, without going into the merits of the case. While disposing so, we are granting a liberty to the appellant revenue to revive the same by filing MA for recalling of this order at any stage to agitate the matter/issue set forth in the present appeal in accordance with the clauses as are contained in the ITAT-Pune Page 3 of 4

Warana Industries Ltd. CO No.39/PUN/2022 PAN : AAACW1694H AY: 2014-15 respective circulars of the CBDT, ergo we order accordingly. In view of our order dismissing the appeal of revenue on LTE, the CO filed by the assessee becomes infructuous.

Resultantly, the appeal of the Revenue and Cross Objection of the assessee are dismissed, with no order as to cost. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Thursday 06th day of October, 2022.

-S/d- -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 06th day of October, 2022. आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent.

The Pr. CIT-1, Kolhapur (M.H.-India) 4. The CIT(A)-1, Kolhapur (M.H.-India) 5. DR, ITAT, Pune Bench ‘B’, Pune 6. ग र्डफ़ इल / Guard File. आिेश नुस र / BY RDER, वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्य य दिकरण, पुणे / ITAT, Pune.

ITAT-Pune Page 4 of 4

DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1, KOLHAPUR vs. WARANA INDUSTRIES LTD, KOLHAPUR

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