DCIT CORPORATE CIRCLE-3(1), CHENNAI vs. TEXX ONE P.LTD, CHENNAI

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ITA 2641/CHNY/2019Status: DisposedITAT Chennai28 November 2019AY 2014-153 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 dismissed the appeal filed by the Revenue. This decision was based on the CBDT Circular No. 17/2019, which mandates dismissal of appeals with a low tax effect.

What were the facts?

The Revenue filed an appeal before the ITAT. Both the Revenue and the Assessee agreed that the tax effect involved in the appeal was less than Rs. 50 lacs.

What were the issues?

The primary issue was whether the appeal should be dismissed due to low tax effect as per CBDT circulars, without delving into the merits of the case.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI RAMIT KOCHARAND SHRI DUVVURU R.L.REDDY

Hearing: 28.11.2019

आदेश / O R D E R

PER RAMIT KOCHAR, Accountant Member:

1.

This appeal filed by Revenue is disposed of because tax effect is less than Rs.50 lacs in this appeal as per 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.

2.

The Ld. DR at the outset submitted that tax effect involved in this appeals filed by Revenue is less than Rs.50 lacs and the appeals is covered 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 Revenue is also not hit by any of exceptions carved out in aforesaid CBDT circular. The learned counsel for assessee stated before the Bench that this appeal filed by Revenue is low tax effect and hence is required to be dismissed as covered by aforesaid CBDT circular.

3.

The tax effect inthis appeal filed by Revenueis undisputedly below Rs.50 lacs this appeal filed by Revenue and thus keeping in view CBDT dated 08th Circular No.17/2019 (F.No.279/Misc.142/2007-ITJ (Pt)) 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 this appeal filed by Revenue due 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) in this appeal. 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 appeal in 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 is hereby granted liberty to file miscellaneous application praying for recall of this order accordingly. We order accordingly.

4.

In result, the appeal filed by Revenue in 2014-15 stand dismissed owing to low tax effect as indicated above. Order pronounced in the open court on 28.11.2019.

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