ACIT (OSD) CORPORATE CIRCLE 4(2), CHENNAI vs. KKA BUILDTECH PRIVATE LIMITED, CHENNAI

The Revenue filed this appeal against the order of the Commissioner of Income Tax (Appeals)-8, Chennai in & 366/16-17 dated 31.01.2017 for the assessment year (AY) 2013-14.

At the time of hearing, the Ld. DR submitted that the tax effect is below Rs.50 lakhs and hence the Revenue’s appeal would be covered by the CBDT Circular No.17/2019 dated 08.08.2019, fixing the monetary limit of Rs.50 lakhs. The Ld. DR on verification admitted that the tax effect involved in the appeal is less than Rs.50 lakhs.

None appeared on behalf of the assessee at the time of hearing. On hearing the ld. DR, we find that the tax effect in this case is less than Rs. 50 lakhs. The CBDT in its Circular No. 17/2019 dated 08.08.2019 instructed its officers to withdraw all the appeals pending before the ITAT where the tax effect is less than Rs. 50 lakhs. This Tribunal is of the considered opinion that this circular of CBDT is binding on the officers of the Department. Therefore, the Revenue cannot proceed further in this appeal. Accordingly, the appeal stands dismissed.

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