DCIT, CORPORATE CIRCLE 3(1), CHENNAI vs. TAMIL NADU SUGAR CORPORATION LTD, CHENNAI

The Ld. DR submitted that tax effect involved in each of these two appeals is less than Rs.50 lacs and these appeals are covered with CBDT circular No.17/2019 dated 08.08.2019 being a low tax effect appeals filed by the Revenue. The learned counsel for the assessee also submitted that these are low tax effect appeals filed by Revenue which are covered by aforesaid CBDT circular dated 08.08.2019

The tax effect in these two appeals filed by Revenue is undisputedly below Rs.50 lacs and 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 1107.2018 and its subsequent amendment dated 20.08.2018, we are inclined to dismiss these two appeal filed by Revenue due to low tax effect involved in these appeal which is below Rs.50 lacs in each of these two appeals. While disposing of these two appeals filed by Revenue due to low tax

I.T.A. Nos.1651 & 1652/Chny/2019 effect vide aforesaid CBDT Circular No.17/2019 dated 08.08.2019, we clarify that we have not commented on the merits of the issue’s in both these appeals. However, at the same time we are granting liberty to Revenue that if at any stage Revenue wants to agitate the matter/issue in these two appeals in accordance with the clauses 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 these order. We order accordingly.

In the result, these two appeals filed by Revenue are dismissed owing to low tax effect as indicated above.