ACIT, CIRCLE KARNAL, KARNAL vs. VEER OVERSEAS LTD., KARNAL

The present appeal is filed by the Revenue in respect of Assessment Year 1999-2000against the ordersdated 30.11.2017 passed by the ld. Commissioner of Income-tax (Appeals), Karnal {“CIT(A)}.

The ld. DR submitted that vide letter of ACIT, Karnal dated 5th April, 2019, sought permission to withdraw the appeal consequent to Circular No.3/2018 dated 11.07.2018 as the tax effect involved in this case is Rs.5,68,765/- only.

We have heard the learned DR. It is found that pursuant to the mandate of section 268A, the CBDT has issued Circular No. 03 of 2018, dated 11th July, 2018 with retrospective effect, revising the monetary limit to Rs.20,00,000/- for not filing appeals before the Tribunal. It is further found that as the tax effect involved in the instant appeal is less than Rs.20,00,000/-, the extant appeal is not maintainable. 4. Going by the prescription of the aforenoted Circular, it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT, wherein tax effect is less than Rs.20,00,000/-. We are, therefore, of the view that in view of above Circular, the request of Revenue for withdrawal of the instant appeal is accepted as the tax effect in this appeal is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/- for not filing the appeal. Accordingly, we dismiss the instant appeal as withdrawn.

In the result, appeal of the Revenue stands dismissed as withdrawn.