THE INCOME TAX OFFICER WARD-6(1)(2), BANGALORE vs. M/S SOBHA SPACE PVT LTD , BANGALORE

The revenue has filed this appeal challenging the order dated 13.12.2018 passed by Ld. CIT(A)-6, Bengaluru and it relates to assessment year 2007-08. The revenue is challenging the decision rendered by Ld. CIT(A) on the validity of reopening of assessment and also in deleting the addition on merits.

The impugned assessment was reopened by the A.O. u/s 147 of the Income-tax Act,1961 ['the Act' for short], wherein the assessing officer assessed a sum of M/s. Sobha Space Pvt. Ltd., Bengaluru Page 2 of 3 Rs.1,31,65,575/- as long term capital gain. In the appeal filed before Ld. CIT(A), the first appellate authority held that the reopening of assessment is without jurisdiction and hence entire proceeding is void-ab-initio. On merits also, the Ld. CIT(A) held that the addition of Rs.1,31,65,575/- by way of long term capital gain is not sustainable. Aggrieved by the order passed by the Ld. CIT(A), the revenue has filed this appeal before us.

At the time of hearing, the Ld. A.R. submitted that the tax effect involved in the quantum disputed by the revenue is less than Rs.50 lakhs and hence in view of the circular no.17/2019 dated 8.8.2019, the revenue is precluded from pursuing this appeal.

We heard Ld. D.R. who did not dispute the factual aspects presented by Ld. A.R. Since the tax effect on the quantum in dispute is less than the monetary limit of Rs.50 lakhs prescribed by the CBDT in the circular referred above for preferring appeal before Tribunal by the revenue, the present appeal is liable to be dismissed in However, the revenue is given liberty to move appropriate application in accordance with law for recall of this order, if it is later found that the issue contested in the appeal is covered by any of the exceptions given in the circular.

In the result, the appeal of the revenue is dismissed. Order pronounced in the open court on 14-08-2020.