ASSISTANT COMMISSIONER OF INCOME-TAX vs. M/S. BHALCHANDRA PRABHAKAR PATIL (HUF),,

Smt. Deepa Khare 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 recent CBDT Circular No. 3/2018, dated 11-07-2018. The ld. Counsel furnished working of tax effect. As per the calculation sheet provided by the assessee, the tax effect is Rs.18,72,622/- including Surcharge and Cess.

Shri Sanjeev Ghei representing the Department fairly admitted that tax effect in the present appeal by the Department 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 disallowance of addition made on account of unsecured loan of Rs.65,53,604/-. The tax effect as per the calculation of assessee is Rs.18,72,622/-. The ld. DR has not raised any objection to the calculation furnished by assessee. Admittedly, 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 to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular (supra).

In the result, appeal of the Revenue is dismissed.