ASSISTANT COMMISSIONER OF INCOME-TAX, BANGALORE vs. M/S.INDO SPANISH TASTY FOODS PVT., LTD., TUMKUR

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ITA 747/BANG/2017Status: DisposedITAT Bangalore01 October 2018AY 2005-062 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 Revenue's appeal as not maintainable, following CBDT Circular No. 3/2018 which mandates not filing appeals with a tax effect below Rs. 20 lakhs. The assessee's cross-objection was also dismissed as not pressed.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The tax effect in the appeal was less than Rs. 20 lakhs. The assessee had also filed a cross-objection.

What were the issues?

Whether an appeal filed by the Revenue before the ITAT is maintainable when the tax effect is below the threshold stipulated in CBDT Circular No. 3/2018. Whether the cross-objection filed by the assessee should be pressed.

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, BENGALURU

Before: SHRI N.V.VASUDEVAN & SHRI INTURI RAMA RAO

For Appellant: Smt. Sree Nandini Das, Addl.CIT(DR)
For Respondent: Shri Narendra Jain, CA
Hearing: 01/10/2018Pronounced: 01/10/2018

(Assessment year: 2005-06) Asst. Commissioner of Income-tax, Circle 3(1)(1), Bengaluru. … Appellant Vs. M/s.Indo Spanish Tasty Foods Pvt. Ltd. Plot No.78-81, KIADB Industrial Ara, Kunigal, Tumkur Dist. -572130 … Respondent AND Cross Objn.No.45/Bang/2017 (In (Assessment year: 2005-06) (By the assessee) ***** Assessee by : Smt. Sree Nandini Das, Addl.CIT(DR) Revenue by : Shri Narendra Jain, CA. Date of hearing : 01/10/2018 Date of pronouncement : 01/10/2018 O R D E R

Per INTURI RAMA RAO, JM :

1.

The instant appeal is directed against the order of the learned Commissioner of Income-tax(Appeals), Bengaluru-12, Bengaluru, dated 17/01/2017 for the assessment year 2005-06

2.

It is stated before us that the tax effect in this case case is less than Rs. 20 lakhs and therefore the Circular No. 3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under Sec. 268A(1) of the Income-tax Act comes into play wherein, the monetary limit for filing the appeals by the Revenue before the ITAT and various High Courts as & CO 40/Bang/2017 Page 2 of 2 well as Apex Court are revised with an object of 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 Rs. 20 lakhs, appeals should not be filed. Thus taking note of CBDT Circular No. 03/2018, dated 11/07/2018 and considering the fact that the tax effect in the instant appeal is less than Rs. 20 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 are left open to be examined in the appropriate proceedings, if arise, 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.

2. Accordingly, in the light of CBDT circular No.03/2018 dated 11/07/2018 the appeal stands dismissed.

3.

Learned AR of the assessee did not press the cross objection. Accordingly, the cross objection is dismissed as not pressed.

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