ITO, CORP WARD 1(4), CHENNAI vs. S V SUNIL KUMAR, CHENNAI

This appeal filed by Revenue is disposed of because tax effect in this appeal is less than Rs.50 lacs as per CBDT Circular No.17/2019 (F.No. 279/Misc.142/2007-ITJ (Pt)) dated 08th August, 2019 issued by Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, amending Para No.3 and 5 of the CBDT Circular No.3 of 2018 dated 11.07.2018 and its subsequent amendment dated 20.08.2018.

The Ld. Counsel for the assessee submitted that tax effect involved in this appeal filed by Revenue is less than Rs.50 lacs and this appeal is covered by CBDT circular No.17/2019 dated 08.08.2019 being a low tax effect appeal filed by Revenue. It is also explained by learned counsel for the assessee that this appeal filed by Revenue is also not hit by any of exceptions carved out in aforesaid CBDT circular and consequentially prayers were made by learned counsel for the assessee to dismiss this appeal. The learned DR also affirmed that this appeal filed by Revenue is to be dismissed as low tax effect appeal covered by aforesaid CBDT circular.

The tax effect in this appeal filed by Revenue is undisputedly below Rs.50 lacs and thus keeping in view CBDT Circular No.17/2019 (F.No.279/Misc.142/2007-ITJ (Pt)) dated 08th August, 2019 issued by Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, amending Para No.3 and 5 of the CBDT Circular No.3 of 2018 dated 11.07.2018 and its subsequent amendment dated 20.08.2018, we are inclined to dismiss this appeal filed by Revenue due to low tax effect involved in this appeal which is below Rs.50 lacs in this appeal . While disposing of this appeal filed by Revenue due to low tax effect vide aforesaid CBDT Circular No.17/2019 dated 08.08.2019, we clarify that we have not commented on merits of the issue(s) in this appeal.However, at the same time we are granting liberty to Revenue that if at any stage Revenue wants to agitate the matter/issue(s) in this appeal in accordance with the clauses/exceptions as are contained in the afore-stated CBDT circular number 17/2019 dated 08.08.2018 read with CBDT circular No 3/2018 dated 11.07.2018 as modified on 20.08.2018, the Revenue is hereby granted liberty to file miscellaneous application praying for recall of this order accordingly. This order is pronounced in the Open Court held in Virtual Mode through Video Conferencing Mode using Webex platform in the presence of both the parties. We order accordingly.

In result, the appeal by Revenue in 2006-07 stand dismissed owing to low tax effect as indicated above.