ITO, WARD-13(1), KOLKATA vs. M/S SHAYANIKA LAND DEVELOPERS PVT. LTD., HOWRAH

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ITA 597/KOL/2020Status: DisposedITAT Kolkata15 February 2021AY 2011-122 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 filed by the Revenue was contrary to the CBDT's policy decision to reduce litigation by increasing monetary limits for appeals. Since the tax effect was below the revised limit of Rs. 50,00,000/- for appeals before the Tribunal, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2011-12. The total tax effect in the appeal was Rs. 6,18,000/-.

What were the issues?

Whether an appeal filed by the Revenue is maintainable before the ITAT when the tax effect is below the monetary limit prescribed by CBDT circulars for reducing litigation.

Which sections of the Income-tax Act were involved?

CBDT Circular No. 17/2019

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A(SMC

Before: Shri A. T. Varkey, JM]

Pronounced: 15.02.2021

This is an appeal preferred by the Revenue against the order of Ld.CIT(A)-5, Kolkata, dated 03.07.2020 for A.Y. 2011-12.

2.

None appeared for the assessee. On perusal of Form no. 36 reveals that total tax effect in this case is to the tune of Rs. 6,18,000/-. Therefore, it comes in the ambit of tax effect of CBDT Circular vide Circular No. 17/2019 dated 08.08.2019.

3.

It is noted that the CBDT has issued Circular No. 17/2019 dated 08.08.2019, whereby the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as a measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:

1.

Before Appellate Tribunal Rs. 50,00,000/- 2. Before High Court Rs.1,00,00,000/- 3. Before Supreme Court Rs. 2,00,00,000/- 1 | P a g e M/s Shayanika Land Developers Pvt. Ltd. A.Y. 2011-12 4. In the present case, the tax effect by the revenue is less than Rs.50,00,000/- and I note that this appeal had been filed by the revenue on 25.11.2020 and since the tax effect is within the monetary limit for filing appeals before Tribunal, in view of the Circular of CBDT (supra) at the first place Revenue should not have preferred this appeal. In view of the above, I hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department in is dismissed in limine.

5.

As a matter of caution, I observe that if the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.50 lakhs or despite low tax effect, the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order.

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