What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was not maintainable as the tax effect was below the monetary limit prescribed by CBDT Circular No. 3/2018. The Departmental Representative also conceded to this fact.

The Revenue filed an appeal before the ITAT against the order of the CIT(A). At the time of hearing, the assessee's counsel argued that the appeal was not maintainable due to low tax effect.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT based on the tax effect threshold set by the CBDT.

DCIT vs V.Shankar | ITAT Chennai 2018

Before: Shri Abraham P. George & Shri Duvvuru RL Reddy

Hearing: 24.10.2018Pronounced: 31.10.2018

O R D E R

PER DUVVURU RL REDDY, JUDICIAL MEMBER:

This appeal filed by the Revenue is directed against the order of the Commissioner of Income Tax (Appeals) 1, Chennai dated 28.03.2018 relevant to the assessment year 2012-13.

At the time of hearing, the ld. Counsel for the assessee has submitted that the appeal filed by the Revenue is not maintainable since the tax effect is below ₹.20 lakhs. The Ld. DR also could not controvert to the finding of the ld. AR.

The CBDT in its latest Circular No.3/2018 dated 11.07.2018 had fixed the monetary tax effect as ₹.20 lakhs for filing appeal before the Tribunal. Further, it is apparent from the orders of the Revenue Authorities that in the case of the assessee, the tax effect is below ₹.20 lakhs which is also conceded by the ld. DR. Hence due to the instructions issued by the CBDT vide its Circular mentioned herein above, we hereby hold that the appeal filed by the Revenue is not maintainable and accordingly the appeal of the Revenue is dismissed.

In the result, the appeal filed by the Revenue is dismissed. Order pronounced on the 31st October, 2018 at Chennai.

DCIT CORPORATE CIRCLE 1(1), CHENNAI vs. V.SHANKAR, CHENNAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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