ASSISTANT COMMISSIONER OF INCOME-TAX vs. SHRI MAHAVIR URBAN CO-OP. BANK LTD.,,

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

We have heard the submissions of ld. DR and have perused the material available on record. The Revenue is in appeal against the order of Commissioner of Income Tax (Appeal) in deleting the addition of Rs.48,26,679/- made by Assessing Officer on account of accrued interest on Non Performing Assets u/s. 43D of the Act and Rs.39,143/- on account of amortization of premium on investments. Prima-facie, 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.