INCOME TAX OFFICER WARD-3(4), HUBLI vs. BSNL EMPLOYEES O-OP CREDIT SOCIETY LTD , HUBLI

This appeal is filed by the revenue which is directed against the order of ld. CIT(A) -Hubli dated 28.02.2017 for Assessment Year 2014-15.

The grounds raised by the revenue are as under. Tax effect relating Grounds of Appeal to each Ground of appeal Deduction u/s 80P(2)(a)(i) allowed by CIT(A) though the 1. case comes under the purview of Rs. 7,19,660/- section 2(24) (viia) and section 80P (4) wef 01/04/2007 Total tax effect (see note below) Rs. 7,19,660/-

At the very outset, it was submitted by ld. AR of assessee that in the present case, the tax effect is below Rs. 50 Lakhs and therefore, the appeal of the Page 2 of 2 revenue is not maintainable because of low tax effect as per the recent CBDT instructions. He further pointed out that the return of income as per the assessment order is Nil after claiming deduction u/s. 80P of the IT Act of Rs. 23,39,144/- and the AO has assessed the income at Rs. 24,11,516/- and therefore, the tax effect in the appeal of the revenue is below Rs. 50 Lakhs. In reply, the ld. DR of revenue had nothing to say.

We have considered the rival submissions. We find that definitely, the tax effect in the present case is below Rs. 50 Lakhs. In fact, in the grounds of appeal itself, the tax effect is worked out at Rs. 79,660/-. Hence, the appeal of the revenue is not maintainable as per the recent CBDT instructions because of low tax effect. Therefore, we dismiss this appeal of the revenue because of low tax effect.

In the result, the appeal filed by the revenue is dismissed. Order pronounced in the open court on the date mentioned on the caption page.