ITO, CORP WARD -1(3), CHENNAI vs. COASTAL FRIEGHT & LOGISTICS PVT LTD, CHENNAI

The Revenue filed this appeal against the order of the learned Commissioner of Income Tax (Appeals)-1, Chennai in Appeal No.56/CIT(A)-1/11-12 dated 19.12.2018 for the assessment year 2009- 10.

At the time of hearing, the Ld.AR 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.

On hearing both sides, 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.