DCIT, CENTRAL CIRCLE 2(4), CHENNAI vs. SWAMINATHAN ENTERPRISES P LTD, KANCHEEPURAM

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ITA 3381/CHNY/2018Status: DisposedITAT Chennai24 October 20193 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, citing CBDT Circular No. 17/2019 which mandates that appeals with a tax effect below Rs. 50 lakhs should not be filed. The issues raised were left open for future examination.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2015-2016. The tax effect in the appeal was less than Rs. 50 lakhs.

What were the issues?

Whether an appeal filed by the Revenue with a tax effect below the prescribed monetary limit in the CBDT circular is maintainable.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘ B’ BENCH : CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI INTURI RAMA RAO]

For Respondent: Shri. AR.V. Sreenivasan, JCIT

आदेश / O R D E R

PER INTURI RAMA RAO, ACCOUNTANT MEMBER

1.

This is an appeal filed by the Revenue directed against the order of the Commissioner of Income Tax (Appeals)-18, Chennai (‘CIT(A)’ for short) dated 28.08.2018 for the Assessment Year (AY) 2015-2016.

ITA No. 3381/CHNY/2018 :- 2 -:

2.

It is stated before us that the tax effect in this case is less than Rs.50 lakhs and therefore, the Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under Sec. 268A(1) of the IT Act comes into play wherein, the monetary limit for filing the appeal by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of the reducing the tax litigation. Vide para 3 of the said circular (supra) it is stated that in cases where the tax effect in the appeals to be filed before the Appellate Tribunal does not exceed �50 lakhs appeals should not be filed. Thus taking a note of CBDT Circular No. 17/2019, dated 08.08.2019 and considering the fact that the tax effect in the instant appeal is less than Rs.50 lakhs, the present appeal deserves to be dismissed as not pressed / not maintainable. However, we make it clear that the issues raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order if so advised. Accordingly, in the light of CBDT circular No.17/2019 dated 08/08/2019, the appeal filed by the Revenue stands dismissed.

ITA No. 3381/CHNY/2018 :- 3 -:

3.

In the result, the appeal filed by the Revenue stands dismissed.

Order pronounced on 24th day of October, 2019, at Chennai.

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