ITO, CHENNAI vs. SMT. RADHA JAYARAMAN, CHENNAI

This appeal filed by the Revenue and the cross objection filed by the assessee are directed against the order of the learned Commissioner of Income Tax (Appeals) -2, Chennai in dated 31.08.2016 for the assessment year 2012- 13.

At the time of hearing, the Ld. AR submitted that the tax effect is below Rs. 50 lakhs and hence the Reveue’s appeal would be covered by :-2-: ITA No:3128/Chny/2016 &CO no: 199/Chny/2016 the CBDT Circular No. 17/2019 dated 08.08.2019, fixing the monetary limit of Rs. 50 lakhs. The Ld. DR on verification admitted that the tax effect involved in the appeal is less than Rs. 5 lakhs.

On hearing both sides, we find that the tax effect in this case is less than Rs. 50 lakhs. The CBDT in its Circular No. 17/2019 dated 08.08.2019 instructed its officers to withdraw all the appeals pending before the ITAT where the tax effect is less than Rs. 50 lakhs. This Tribunal is of the considered opinion that this circular of CBDT is binding on the officers of the Department. Therefore, the Revenue cannot proceed further in this appeal. Accordingly, the appeal stands dismissed.

Since we have dismissed the appeal filed by the Revenue on monetary limits, the cross objection filed by the assessee has become infructuous.

In the result, the appeal filed by the Revenue as well as the cross objection filed by the assessee are dismissed.