DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 1(1)(2), BANGALORE vs. M/S. BIRDY EXPORTS PRIVATE LIMITED, BANGALORE

The Revenue has filed an appeal against the order of Commissioner of Income Tax (Appeals)-1, Bangalore passed u/s. 143(3) and 250 of the Income Tax Act, 1961.

The Revenue has filed this appeal where the tax effect in the appeal is Rs.34, 36,132 which is below Rs.50 lakhs. We find as per the CBDT Circular No.17/2019 Dt.8.8.2019, no appeal shall be filed by the Revenue before the Tribunal where the tax effect is below Rs.50 lakhs. In the present case, the Assessing Officer has raised a demand under Section 143(3) and 250 of the Act vide order dt.29.01.2016 of Rs.34,36,132 (including interest) which is not disputed and the learned CIT (Appeals) has granted relief. Further the Circular of the CBDT is also applicable to the pending cases. Accordingly, the tax demand raised by the Revenue authorities are below Rs.50 lakhs and circular is applicable to the pending appeals. Hence we dismiss the Revenue’s appeal on maintainability and low tax effect.

In the result, appeal of the Revenue is dismissed. Pronounced in the open court on the date mentioned on the caption page.