DCIT 9(2)(2), MUMBAI vs. CYBERTECH SYSTEMS AND SOFTWARE LTD, MUMBAI

This appeal by the Revenue and cross objection by the assessee are directed against the order of Commissioner of Income Tax (Appeals)-55,

Shri Vispi T. Patel appearing on behalf of the assessee submitted at the outset that appeal of the Revenue is liable to be dismissed on account of low tax effect in the light of CBDT Circular No. 17/2019, dated 08-08-2019. The ld. Authorized Representative for the assessee filed computation of tax according to which the tax effect involved in the appeal of the Revenue is Rs.26,72,266/-.

The ld. Authorized Representative for the assessee also filed a letter dated 08/01/2020 from the assessee to withdraw the cross objection.

Shri Ashish Heliwal representing the Department fairly admitted that the tax effect involved in the appeal by Department is less than Rs.50.00 lacs.

Both sides heard. Material available on record examined. The tax effect involved in this appeals is less than the monetary limit prescribed by the recent CBDT Circular No. 17/2019, dated 08-08-2019 for filing of appeals before the Tribunal by the Department. The CBDT vide circular dated 08-08-2019 (supra) has amended Para 3 of Circular No. 3 of 2018 dated 11-07-2018 thereby enhancing monetary limit of tax effect from Rs.20 Lakhs to Rs.50 Lakhs for filing of appeals by the Department before the Tribunal. Thus, without going into merits of the issue raised in the appeal, the present appeal by the Revenue is dismissed on account of low tax effect.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20/08/2018.

In view of the above, the appeal by the Revenue and cross objection by the assessee are dismissed.