ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 1(1), DAVANAGERE vs. SHRI. KANKARA SRINATH REDDY, DAVANAGERE

The Revenue has filed an appeal against the order of Commissioner of Income Tax (Appeals), Davangere passed u/s. 143(3) and 250 of the Income Tax Act, 1961. We find there is delay of 12 days in filing the appeal and on examination of condonation petition filed for delay in filing the appeal; we find Affidavit are reasonable and we condone the delay and admit the appeal.

At the time of hearing, it was brought to the knowledge of the Bench the tax effect in the appeal is below Rs.50 lakhs therefore covered by CBDT Circular No.17/2019 Dt.8.8.2019. We find as per the CBDT Circular No.17/2019 Dt.8.8.2019, no appeal shall be filed by the Revenue before the Tribunal where the tax effect is below Rs.50 lakhs. In the present case, the Assessing Officer has raised a demand under Section 143(3) vide order dt.29.12.2017 of Rs.32,63,884 (excluding interest) which is not disputed and the learned CIT (Appeals) has granted relief. Further the Circular of the CBDT is also applicable to the pending cases. Accordingly, the tax demand raised by the Revenue authorities is below Rs.50 lakhs and circular is applicable to the pending appeals. Hence we dismiss the Revenue’s appeal on maintainability and low tax effect.