ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(4), BANGALORE vs. PROPRIETOR: R K PRODUCTION, BANGALORE

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ITA 1728/BANG/2017Status: DisposedITAT Bangalore29 January 2020AY 2009-102 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 not maintainable due to low tax effect, as it was below the threshold specified by CBDT instructions. Therefore, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting an addition of Rs. 55,23,400/- made by the AO on account of capital gain. The returned income was Rs. 35,04,420/- and the assessed income was Rs. 96,70,771/-.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the Tribunal based on the tax effect, considering CBDT instructions.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH : BANGALORE

Before: SHRI A. K. GARODIA & SMT BEENA PILLAI

For Appellant: Shri. G. S. Prashanth, CA
For Respondent: Ms. Neera Malhotra, CIT-DR, Shri. G. S. Prashanth, CA
Hearing: 12.12.2019Pronounced: 29.01.2020

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SMT BEENA PILLAI, JUDICIAL MEMBER Assessment year : 2009-10 The Assistant Commissioner of Income Tax , Shri. Ravi Kiran, Central Circle – 1(4), Proprietor : R. K. Production, Bengaluru. Vs. #19-1st Stage, Teachers Colony, Kumaraswamy Layout, Bengaluru – 560 078. PAN : AETPR 0858 Q APPELLANT RESPONDENT Revenue by : Ms. Neera Malhotra, CIT-DR Assessee by : Shri. G. S. Prashanth, CA Date of hearing : 12.12.2019 Date of Pronouncement : 29.01.2020 O R D E R Per A. K. Garodia, AM

This appeal is filed by the Revenue and the same is directed against the order of learned CIT(A)-11, Bengaluru, dated 25.05.2017, for Assessment Year 2009-10.

2.

In this appeal, the only issue disputed by the Revenue is regarding the deletion of addition of Rs.55,23,400/- made by the AO on account of capital gain and the assessee’s share of built up area in the project executed under JDA. In fact, as per paras 3A and 3B of Form 36 filed by the Revenue, the returned income was Rs.35,04,420/- and the assessed income was Rs.96,70,771/-. Hence, even if the entire addition made by the AO is deleted by the learned CIT(A) and the Revenue is in appeal for the entire such deletion then also the tax effect in this appeal of the Revenue is bound to be below Rs.50 lakhs. As per the latest CBDT instruction, the Revenue is not supposed to file any appeal before the Tribunal in a case where the tax effect is below Rs.50 lakhs. This is also a settled position of law that this instruction of CBDT is applicable even to pending appeals also. In view of this, we hold that this appeal of the Revenue is not maintainable because of low tax effect and the same is dismissed accordingly.

3.

In the result, Revenue’s appeal is dismissed.

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