DCIT, DEHRADUN vs. M/S. GANGA REALTORS (P) LTD., DEHRADUN

This appeal by Revenue is filed against the order of the Learned Commissioner of Income Tax (Appeals)-2, Aayakar Bhawan, Sanjay Place, M.G. Raod, Agra, [“Ld. CIT(A)”, for short], dated 31.03.2016, for Assessment Year 2008-09.

(2) Admittedly, the tax effect in the Departmental Appeal is less than Rs.20 lakhs. Vide Circular No. 3 of 2018 dated 11.07.2018 issued by Central Board of Direct Taxes (“CBDT”, for short) under section 268A of the Income Tax Act, 1961 (“I.T. Act”, for ITA No.- 4861/Del/2016. M/s Ganga Realtors (P) Ltd. short) it has been directed that Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs.20 lakhs. It is also directed that this instruction will apply retrospectively to the pending appeals and appeals to be filed henceforth in the Tribunal. It is also directed in this Circular, that pending appeals below the specified tax effect may be withdrawn/not pressed. Learned CIT(DR), who appeared on behalf of Revenue, did not press the appeal in view of the aforesaid Circular of CBDT. We may also note that this appeal of Revenue would not fall within the exceptions provided in the aforesaid Circular. In the result, the Departmental Appeal is not maintainable, in view of aforesaid CBDT Circular. The Appeal of Revenue is dismissed as withdrawn/not pressed by the Learned CIT(DR). We clarify that Revenue will be at liberty to file a miscellaneous application seeking recall of this order for restoration of the appeal, if it is found that the appeal of Revenue is not covered by aforesaid CBDT Circular.

(3) In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on 15th day of January, 2019