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(A) This appeal by Revenue is filed against the order of Learned Commissioner of Income Tax (Appeals)-3, Kolkata-700069, [“Ld. CIT(A)”, for short], dated 16.06.2016 for Assessment Year 2010-11. Grounds taken in this appeal of Revenue are as under:
“1. Whether on the facts and circumstances of the case Ld. CIT(A) was justified in taking only those investment for the purpose of calculation of Rule 8D(iii, which have yielded tax free income in place of the calculation made by AO by taking average value of investment as per accounts of the assessee.
Whether on the facts and circumstances of the case Ld. CIT(A) was justified in deleting the apportionment of Head Office expenses to the unit eligible for Page 1 of 4
ITA No.- 1679/Kol/2016 M/s Sicpa India Pvt. Ltd. deduction u/s. 80IC as the same does not have any nexus with the business of eligible undertaking.
Whether on the facts and circumstances of the case Ld. CIT(A) was justified in holding the view that assessee in present case, was eligible for deduction u/s. 80IC of the I.T.Act,1961.
Whether on the facts and circumstances of the case Ld. CIT(A) was justified in deleting Rs.46,32,475/- being notionally allocated expenditure incurred to earn dividend income in computing Book Profit u/s 115JB of the I.T.Act,1961.
That the appellant reserves the right to amend, alter or add to any ground(s) of appeal before or at the time of hearing of appeal.”
(B) At the outset, learned Authorized Representative (“Ld. AR”, for short) for the assessee brought to our notice, at the time of hearing, that tax effect in this appeal is Rs. 50,00,000/-. Both sides, [Representatives of Revenue and the Assessee] were in agreement, at the time of hearing before us, that the tax effect in the present appeal is Rs. 50,00,000/-. Vide recent CBDT Circular No. 17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum threshold limit of tax effect of filing of appeals by Revenue in Income Tax Appellate Tribunal (“ITAT”, for short) has been enhanced to Rs. 50,00,000/-. In a subsequent clarification issued by CBDT vide F.No. 279/Misc/M-93/2018-ITJ, dated 20/08/2019, it has been clarified by CBDT that the aforesaid revised monetary limit is also applicable to all pending appeals in ITAT. As the tax effect in this appeal does not exceed the aforesaid limit of Rs. 50,00,000/-; the Learned Senior Departmental Representative (“Ld. SR DR”, for short) for Revenue did not press the appeal. The learned Authorized Representatives for the assessee also submitted that the appeal was not maintainable in view of the aforesaid CBDT Circular dated 08.08.2019 and 11.07.2018; and aforesaid clarification dated Page 2 of 4
ITA No.- 1679/Kol/2016 M/s Sicpa India Pvt. Ltd. 20.08.2019 issued by CBDT. In view of the foregoing, this appeal is dismissed being not pressed and also being not maintainable having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with aforesaid CBDT Circular No. 3 of 2018 in the light of aforesaid clarification dated 20/08/2019.
(C) Before leaving, we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking recall of this order and, for restoration of this appeal if it is found that appeal of Revenue is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.
In the result, this appeal by Revenue is dismissed. Our decision was orally (D) pronounced in the Open Court after conclusion of hearing on the date of hearing. Now, this written order is pronounced in Open Court on 15/11/2019.