ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1(1), HUBBALLI vs M/S DESAI & CO., HUBBALLI

Income Tax Appellate Tribunal, BANGALORE BENCHES : “B”, BANGALORE

Before: SHRI A.K.GARODIA & SMT.BEENA PILLAI

For Appellant: Shri S.V.Ravishankar, Advocate

For Respondent: Shri R.N.Siddappaji, Addl.CIT, Shri S.V.Ravishankar, Advocate

Date of hearing : 26-08-2019 Date of pronouncement : 09-09-2019 O R D E R PER BEENA PILLAI, JUDICIAL MEMBER : Present appeal is preferred by revenue against order of Ld.CIT(A), Hubli dated 31.03.2016 for Assessment Year 2010-11.

We have considered the rival submissions. We find that in this case as per return of income filed by the assessee, income declared was of Rs.77,68,690/-, as against assessed income of Rs. 2,81,49,110/-. This addition has been deleted by Ld. CIT(A) partly. Before this Tribunal Revenue alleges disallowance deleted by Ld.CIT(A) in respect of provision for extended warranty to the extent of Rs.33,60,000/-. As per the latest notification issued by CBDT, (B)/2016 Page 2 of 2 no appeal is required to be filed before the Tribunal, if the tax effect is below Rs.50.00 Lakhs and since in the present case, the tax effect of alleged issue is below Rs.50.00 Lakhs, appeal of revenue is not maintainable due to low tax. This is by now settled position of law that CBDT instruction is applicable to pending appeals and hence appeal of revenue is dismissed because of low tax effect.

ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1(1), HUBBALLI vs. M/S DESAI & CO., HUBBALLI