DCIT CENTRAL CIRCLE 2, MADURAI vs. ADSORBENT CARBONS PRIVATE LIMITED, TUTICORIN

PDF · subscribers
ITA 2998/CHNY/2018Status: DisposedITAT Chennai29 September 2020AY 2013-143 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 dismissed the Revenue's appeal as not maintainable due to low tax effect, following CBDT Circular No. 17 of 2019. The assessee's cross-objection was also dismissed as it did not survive.

What were the facts?

The Revenue filed an appeal before the ITAT, and the assessee filed a cross-objection. The tax effect in the Revenue's appeal was less than Rs. 50 lakhs.

What were the issues?

Whether an appeal with a tax effect below the prescribed monetary limit in a CBDT circular should be dismissed. Whether a cross-objection survives when the main appeal is dismissed on maintainability grounds.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI V.DURGA RAO & SHRI G.MANJUNATHA

Hearing: 29.09.2020

Heard together (2 matters)

I.T.A.No.2998/Chny/2018
C.O.No.8/ Chny/2019

Read from the judgment's own cause title. This page is filed under one of them.

PER G.MANJUNATHA, ACCOUNTANT MEMBER:

1.

This appeal filed by the Revenue and Cross Objection filed by the assessee are directed against the order of the Commissioner of Income Tax (Appeals)-19, Chennai dated 17.07.2018 and they pertain to the assessment year 2013-14.

2.

It is stated before us that the tax effect in this case is less than Rs. 50 lakhs and therefore, the Circular No. 17 of 2019 dated 08.08.2019 issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under section 268A(1) of the Income Tax Act, 1961 comes into play wherein, the monetary limit for filing the appeal by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of the reducing the tax litigation. In the said circular, it is stated that in cases where the tax effect in the appeals to be filed before the Appellate Tribunal does not exceed Rs. 50 lakhs appeals should not be filed. Thus, taking note of CBDT Circular No. 17 of 2019 dated 08.08.2019 and considering the fact that the tax effect in the instant appeal is less than Rs. 50 lakhs, the present appeal deserves to be dismissed as not pressed / not maintainable. However, we make it clear that the issues raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeals fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order if so advised.

Accordingly, in the light of CBDT circular No. 17 of 2019 dated 08.08.2019, the appeal stands dismissed.

C.O. No.8/Chny/2019:

3.

We find that there is a delay of 8 days in filing cross objection filed by the assesee, for which necessary petition along with affidavit has been filed for condonation of delay. The reasons given by the assessee for not filing cross objection within the time allowed under the Act is under a bonafide belief. Therefore, we condone the delay in filing cross objection filed by the assessee and admit the same.

Since, we dismissed the appeal of the Revenue as not maintainable on account of low tax effect, the cross objection filed by the assessee does not survive and accordingly Cross Objection filed by the assessee is dismissed.

4.

In the result, the appeal filed by the Revenue and Cross Objection by the assessee are dismissed. Order pronounced in the open court on 29th September, 2020

More judgments on Section 268A

All 3,931 judgments and leading authorities on Section 268A →

Recent GST High Court judgments

Search GST case law →