ACIT, CIRCLE, PARWANOO vs. M/S P.A. TIME INDUSTRIES, DHARAMPUR

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ITA 958/CHANDI/2019Status: DisposedITAT Chandigarh24 March 2025AY 2013-14Bench: SHRI RAJPAL YADAV (Vice President), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 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 is not maintainable in terms of the latest CBDT circular on low tax effect. The revenue's appeal is liable to be dismissed as non-maintainable, with liberty to seek revival if the tax effect is found to be higher or if the case falls under an exception.

What were the facts?

The revenue filed an appeal against an order of the CIT(A) concerning assessment year 2013-14. The Assessing Officer had framed the assessment under Section 143(3) of the Act. The tax effect of the revenue's appeal was calculated to be less than the prescribed limit of Rs. 60 Lacs.

What were the issues?

Whether the revenue's appeal is maintainable considering the low tax effect as per the latest CBDT circular.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

(िनधा�रणवष� / Assessment Year: 2013-14) ACIT-Circle Parwanoo M/s P.A. Time Industries बनाम/ Vs. Himachal Pradesh-17320. Plot No. 35F, Sector-2, HPMC Road, Dharampur-173209 �थायीलेखासं./जीआइआरसं./PAN/GIR No. AADFP-8266-E (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri Neeraj Jain (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT )– Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 20-03-2025 घोषणाकीतारीख /Date of Pronouncement : 24-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year (AY) 2013-14 arises out of an order of learned Commissioner of Income Tax (Appeals), Shimla [CIT(A)] dated 27-03-2019 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 28-01-2016.

2.

The Ld. AR, at the outset, placed on record tax effect computation to show that the tax effect of revenue’s appeal is less than prescribed limit of Rs.60 Lacs as per latest CBDT Circular No.5/2024 dated 15-03- 2024 which has superseded all the earlier circulars and the same applies to the pending appeals also. Accordingly, the appeal is not maintainable.

3.

The Ld. Sr. DR, on the other hand, stated that revenue is in the process of filing additional grounds qua disallowance of Rs.8.62 Lacs and therefore, the appeal may be kept pending.

4.

Upon perusal of impugned order, it could be seen that pursuant to impugned assessment as framed by Ld. AO, the tax demand as raised against the assessee has been quantified at Rs.55.90 Lacs. In Income Tax Computation Form as issued by Ld. AO on 28-01-2016, the net tax as shown to be payable by the assessee has been quantified at Rs.55.04 Lacs. Apparently, the total demand as raised by the assessee without considering the relief granted by Ld. CIT(A) is much less than prescribed limit of Rs.60 Lacs and therefore, the appeal is not maintainable in terms of latest CBDT low tax effect circular. It is another fact that the revenue wants to raise additional grounds after 6 years of impugned order. Nevertheless, the appeal of the revenue is not maintainable in terms of latest CBDT circular on low tax effect. No exception has been shown to us. Therefore, the revenue’s appeal is liable to be dismissed as non-maintainable subject to liberty to revenue to seek revival of the appeal, in case the tax effect is found to be more or it is shown that the case falls under any of the exception.

5.

The appeal stand dismissed. Orders pronounced on 24-03-2025. .

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