JCIT-7(1)(2), MUMBAI vs. HINDUSTAN POLYAMIDES & FIBRES LTD, MUMBAI

At the outset, learned Counsel for the assessee submitted that the tax effect on the additions contested by the Revenue is less than

2 Hindustan Polyamides & Fibres Ltd. the prescribed limit of ` 50 lakh fixed for filing of appeal before the Income Tax Appellate Tribunal, hence, is covered by the recently issued low tax effect Circular no.17/2019, dated 8th August 2019, r/w Circular no.3/2018, dated 11th July 2018, issued by the Central Board of Direct Taxes. Therefore, appeal filed by the Revenue is not maintainable.

The learned Departmental Representative fairly agreed with the aforesaid submissions of learned Authorised Representative.

We have perused the material on record and gone through the CBDT Circulars referred to above. We find that the tax effect on the quantum of additions disputed by the Revenue in the present appeal is below the threshold limit of ` 50 lakh. The Revenue has not brought any material before us to show that its appeal is protected by any of the exceptions provided in the aforesaid circulars. Therefore, the appeal filed by the Revenue has to be withdrawn/not pressed, since the aforesaid Circulars issued by CBDT apply even to the pending appeals. In view of the aforesaid, we dismiss the present appeal filed by the Revenue. However, it is made clear, if at a later point the Revenue finds that its appeal is protected by any of the exceptions provided in the circulars referred to above, it will be at liberty to seek recall of this order and adjudication of the appeal on merits.