M/S BRADY COMPANY INDIA PVT LTD,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1(1)(2), BANGALORE

At the time of hearing the ld DR submitted that the tax effect involved in the issues contested by the Revenue is less than 50 lakhs. Accordingly it was submitted that the Revenue is precluded from pursuing this appeal as per Circular No.17/2019 dated &3380 /Bang/2017 CO No.1/Bang/2019 Page 3 of 5 8/8/2019 issued by Central Board of Direct Taxes, which has been clarified by CBDT as applicable to all pending appeals, vide its Instruction dated 20/8/2019.

Since it is stated that the appeal of revenue shall be hit by the monetary limits prescribed by the CBDT in its Circular, referred above, for preferring appeals before the Tribunal, we dismiss the appeal of the Revenue in limine. However liberty is given to the Revenue to move application for recall of the order, if it is found that the tax effect involved on the issues disputed in the appeal is more than 50 lakhs or if it is found that the issues contested therein fall in the category of exceptions prescribed by the CBDT Circular.

The Ld A.R appearing for the assessee submitted that in the event that the Department appeal is dismissed on account of tax effect, the assessee shall withdraw its appeal and cross-objection. The assessee also moved a letter dated 5th Feb, 2020 in this regard.

Since we have held that the Revenue appeal is not maintainable in view of the CBDT Circular referred above, we dismiss the appeal of the Revenue in limine. Accordingly the appeal and the Cross-objection filed by the assessee are dismissed as not pressed. &3380 /Bang/2017 CO No.1/Bang/2019 Page 4 of 5

In the result, the appeal of the Revenue is dismissed in limine and the appeal and Cross-objection of the assessee is dismissed as not pressed.