ACIT CENTRAL CIRCLE 3(1), CHENNAI vs. KAIVALLYA ENTERTAINMENT (P) LTD., CHENNAI

This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-19, Chennai, dated 06.07.2017 and pertains to assessment year 2010-11. The assessee has filed a cross-objection against the very same order of the CIT(Appeals). Hence, we heard both the appeal and the cross-objection together and disposing the same by this common order.

On hearing the Ld. Departmental Representative, we find that the tax effect in this case is less than `50 lakhs. The CBDT in its Circular No.17/2019 dated 08.08.2019 increased the monetary limit for filing appeal before this Tribunal and instructed its officers to withdraw all the appeals pending before the ITAT where the tax effect is less than `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, this appeal stands dismissed.

The assessee has filed the cross-objection only to support the order of the CIT(Appeals). Therefore, the cross-objection of the assessee becomes infructuous.

In the result, both the appeal of the Revenue and the cross- objection of the assessee stand dismissed. Order pronounced in the open court on 3rd September, 2019 at Chennai.