ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2(1)(2), BANGALORE vs. M/S EFD INDUCTION PVT LTD, BANGALORE

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ITA 795/BANG/2017Status: DisposedITAT Bangalore18 October 2019AY 2010-112 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 found that the tax effect in all three assessment years was below the threshold of Rs. 50 Lakhs. Therefore, the appeals filed by the revenue were dismissed as not maintainable.

What were the facts?

The revenue filed three appeals against the orders of the CIT(A) for assessment years 2009-10 to 2011-12. The assessee contended that the appeals were not maintainable due to low tax effect, as per CBDT instructions.

What were the issues?

The primary issue was the maintainability of the revenue's appeals before the ITAT due to low tax effect as per CBDT instructions.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH : BANGALORE

Before: SHRI ARUN KUMAR GARODIA & SHRI PAVAN KUMAR GADALE

For Appellant: Shri H.V. Gowthama, CA
For Respondent: Shri Shahnawaz-ul-Rahman, JCIT (DR)
Hearing: 05.09.2019Pronounced: 18.10.2019

O R D E R Per Shri A.K. Garodia, Accountant Member These three appeals are filed by the revenue and these are directed against three separate orders of ld. CIT(A)-2, Bangalore all dated 14.12.2016 for Assessment Years 2009-10, 2010-11 and 2011-12. All these appeals were heard together and are being disposed of by way of this common order for the sake of convenience.

2.

At the very outset, it was submitted by ld. AR of assessee that in all these three appeals, the tax effect is below Rs. 50 Lakhs per year and hence, these appeals of revenue are not maintainable because of low tax effect as per the latest CBDT instructions. The ld. DR of revenue could not show that the tax effect is not less than Rs. 50 Lakhs in any of these three years.

3.

We have considered the rival submissions. We find that in Assessment Year 2009-10, the income declared by the assessee in the return of income is Rs. 567.74 Lakhs whereas the assessed income is Rs. 610.58 Lakhs. Hence even if the entire addition is deleted and revenue is in appeal for entire such deletion then also the tax effect is bound to be below Rs. 50 Lakhs. Similarly, in Assessment Year 2010-11, the returned income is Rs. 152.77 Lakhs and to 796/Bang/2017 Page 2 of 2 the assessed income is Rs. 231.88 Lakhs and hence, in this year also, the tax effect is bound to be below Rs. 50 Lakhs. In Assessment Year 2011-12, the returned income is Rs. 792.65 Lakhs and the assessed income is Rs. 830.57 Lakhs and hence, in this year also the tax effect is below Rs. 50 Lakhs and therefore, all these three appeals of revenue are not maintainable because of low tax effect and are dismissed accordingly.

4.

In the result, all the three appeals filed by the revenue are dismissed. Order pronounced in the open court on the date mentioned on the caption page.

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