ASSISTANT COMMISSIONER OF INCOME TAX vs. M/S. POWERCRAFT ELECTRONICS PVT.LTD.,, KOLHAPUR

Shri M.K. Kulkarni appearing on behalf of the assessee submitted at the outset that the appeal of the Revenue is liable to be dismissed on account of low tax effect in terms of CBDT Circular No. 3/2018, dated 11-07-2018. The ld. Counsel for the assessee also filed working of tax effect involved. As per the working sheet furnished by the ld. Counsel the total tax effect including surcharge is Rs.13,33,300/-.

Shri Pankaj Garg representing the Department fairly admitted that in the present appeal by the Department tax effect is less than Rs.20 Lakhs.

Both sides heard. The Revenue is in appeal against the order of Commissioner of Income Tax (Appeal) in deleting the addition made on account of unproved purchases Rs.38,72,036/- u/s. 69C of the Act. Undisputedly, the tax effect involved in appeal is less than the monetary limit prescribed by the recent CBDT Circular for filing of appeals before the Tribunal by the Department. The CBDT vide Circular No. 3/2018, dated 11-07-2018 has raised the monetary limit of tax effect for filing of appeals by the Department before the Tribunal to Rs.20 lakhs. The Circular applies to the appeals to be filed by the Department in future as well as the appeals pending before the Tribunal. Without going into merit of the issues raised in the appeal, in view of the CBDT Circular the present appeal of the Revenue is dismissed on account of low tax effect.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material

In the result, appeal of the Revenue is dismissed.