ACIT CORPORATE CIRCLE 5(2), CHENNAI vs. DEVASAGAYAM ARULANANDHU, CHENNAI

The Ld. DRat the outset submitted that tax effect involved in this appeals filed by Revenue is less than Rs.50lacs and the appealsiscovered by CBDT circular No.17/2019 dated 08.08.2019 being a low tax effect appeals filed by Revenue. It is also explained by learned DR that this appeal filed by Revenueis also not hit by any of exceptions carved out in aforesaid CBDT circular.

The tax effect inthis appeal filed by Revenueis undisputedly below Rs.50 lacsand thus keeping in view CBDT Circular No.17/2019 (F.No.279/Misc.142/2007-ITJ (Pt)) dated 08th August, 2019 issued by Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, amending Para No.3 and 5 of the CBDT Circular No.3 of 2018 dated 11.07.2018 and its subsequent amendment dated 20.08.2018, we are inclined to dismiss thisappeal filed by Revenue owing to low tax effect involved inthis appeal which is below Rs.50 lacs. While disposing of this appeal filed by Revenue due to low tax effect vide aforesaid CBDT Circular No.17/2019 dated 08.08.2019, we clarify that we have not commented on merits of the issue(s) inthisappeal.However, at the same time we are granting liberty to Revenue that if at any stage Revenue wants to agitate the matter/issue(s) in this appealin accordance with the clauses/exceptions as are contained in the afore-stated CBDT circular number 17/2019 dated 08.08.2018 read with CBDT circular No 3/2018 dated 11.07.2018 as modified on 20.08.2018, the Revenue can file miscellaneous application praying for recall of this orderaccordingly. We order accordingly.

In result, theappealfiled by Revenue in 2012-13standdismissed owing to low tax effect as indicated above. Order pronounced in the open court on 05.12.2019.