THE DCIT, CIRCLE-4(2), AHMEDABAD vs. SHRI JAYESHBHAI CHHAGANBHAI PATEL, AHMEDABAD

The captioned appeal has been filed at the instance of the Revenue against the order of the Learned Commissioner of Income Tax(Appeals)-4, Ahmedabad, dated 30/11/2018 arising in the matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2015-2016.

At the outset, it was noticed that the appeal filed by the Revenue is hit by recent CBDT Circular No. 17 of 2019 whereby the Board has prohibited the Department from filing the appeal before the Tribunal, where tax effect is below Rs. 50 lakhs. In the instant appeal, the tax effect on the disputed additions in respect of long term capital gains falls below Rs. 50 lakhs prescribed by the Board. Therefore, appeal filed by the Revenue is not maintainable before the Tribunal, and the same is liable to be dismissed. At the time of hearing, the ld. DR could not dispute that the tax effect exceeds Rs. 50 lacs or the case of the assessee falls in any of the exception. As such, the ld. DR left the matter to the Bench to decide the same in accordance with law.

After hearing the ld. DR, we find that the tax effect involved in the present appeal filed by the Revenue falls below Rs.50 lakhs, which is in contravention of recent CBDT Circular cited (supra). This fact has not been disputed by the ld. DR before us. Therefore, we dismiss the appeal of the Revenue as not maintainable in view of the above CBDT Circular, and stands dismissed accordingly.

However, we make it clear that subsequently in case the Departments finds that the tax effect involved in the appeal is more than Rs.50 lakhs and does not hit by the CBDT Instruction, then liberty is hereby given to the Department to file appropriate application for recall of this order as per the provisions of law. If the Tribunal is so satisfied, then to adjudicate the matter on merit.

In the result, the appeal of the Revenue is dismissed due to low tax effect.