THE DCIT, CIRCLE-3(3), AHMEDABAD vs. SHRI MANISH RAICHAND SHAH, AHMEDABAD

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ITA 294/AHD/2020Status: DisposedITAT Ahmedabad06 May 2022AY 2009-103 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Revenue's appeal was not maintainable due to the CBDT circular which mandates dismissal of pending appeals where the tax effect does not exceed Rs. 50 Lakhs.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting an addition of Rs. 86,47,000/-. The assessee argued that the appeal was hit by a CBDT circular revising monetary limits for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable in light of the revised monetary limits prescribed by CBDT circulars for filing appeals.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Before: Ms. Annapurna Gupta

For Appellant: Shri V.K. Singh, Sr. D.R
For Respondent: Shri P.F. Jain, C.A

Appellant by : Shri V.K. Singh, Sr. D.R. Respondent by : Shri P.F. Jain, C.A. Date of hearing : 05-05-2022 Date of pronouncement : 06-05-2022 आदेश/ORDER PER BENCH:-

The present appeal has been filed by the Revenue against the order passed by the Commissioner of Income Tax (Appeals)-7, Ahmedabad, (in short referred to as CIT(A)), dated 31-01-2020, u/s. 250(6) of the Income Tax Act, 1961(hereinafter referred to as the “Act”) pertaining to Assessment Year (A.Y) 2009-10.

2.

The grounds of appeal raised by the Revenue are read as under:-

Page No 2 DCIT vs. Shri Manish Raichand Shah 1. The Ld.CIT(A) has erred in law and on facts deleting the addition of Rs. 86,47,000/- made by Assessing Officer on account of disallowance made u/s 40(a)(ia) of the Act. 2. On the facts and circumstances of the case, Ld CIT(A) ought to have upheld the order of the Assessing Officer. 3. It is, therefore, prayed that the order of LdCIT(A) may be set aside and that of the Assessing Officer be restored.

3.

At the time of hearing, it was submitted by the Ld.AR for the assessee that the appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. It is inter alia noticed that the CBDT vide Instruction No. F. No. 279/Misc/M-93/2018-ITJ dt. 20/08/2019 has observed that Circular No.17/2019 dated 08/08/2019 relating to enhancement of monetary limits is also applicable to all pending appeals. As per aforesaid Circular read with instruction, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

4.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to Page No 3 DCIT vs. Shri Manish Raichand Shah seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

5.

In the result, the appeal of the Revenue is dismissed.

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