What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal without going into the merits of the case. This was based on the CBDT Circular No. 3/2018, which raised the monetary limit for filing appeals to Rs. 20 lakhs.

The Revenue filed an appeal against the deletion of an addition made by the Assessing Officer. The assessee argued for dismissal due to low tax effect, which was admitted by the Revenue.

What were the issues?

Whether the Revenue's appeal should be dismissed on the grounds of low tax effect as per the CBDT Circular, despite the merits of the addition made by the AO.

Assistant Commssioner of… vs M/S. Bafna Builders & Land… | ITAT Pune 2018

Income Tax Appellate Tribunal, “A” BENCH, PUNE

Before: SHRI D. KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM

For Appellant: Shri Sunil Ganoo

आदेश / ORDER

PER VIKAS AWASTHY, JM :

The appeal has been filed by the Revenue against the order of Commissioner of Income Tax (Appeals)-2, Nashik dated 13-01-2015 for the assessment year 2010-11.

2 ITA No. 364/PUN/2015, A.Y. 2010-11

Shri Sunil Ganoo 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. AR of assessee has furnished working of tax effect involved in the appeal. According to the working, tax effect is Rs.17,81,409/- including Cess.

Mrs. Shweta Mishra representing the Department fairly admitted that in the present appeal by the Department tax effect 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 addition of Rs.57,65,078/- made on account of understatement of sale consideration of plots. Undisputedly, 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

3 ITA No. 364/PUN/2015, A.Y. 2010-11

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.

Order pronounced in the open court at the time of hearing on Wednesday, the 01st day of August, 2018.

Sd/- Sd/- (डी. करुणाकरा राव/D. Karunakara Rao) (ववकास अवस्थी / Vikas Awasthy) ऱेखा सदस्य / ACCOUNTANT MEMBER न्याययक सदस्य / JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 01st August, 2018 RK आदेश की प्रयिलऱवऩ अग्रेवषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2. आयकर आयुक्त (अऩीऱ) / The CIT(A)-2, Nashik 3. आयकर आयुक्त / The CIT-2, Nashik 4. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, “ए” बेंच, 5. ऩुणे / DR, ITAT, “A” Bench, Pune. गाडड फ़ाइऱ / Guard File. 6. //सत्यावऩत प्रयत // True Copy// आदेशानुसार / BY ORDER,

यनजी सधचव / Private Secretary, आयकर अऩीऱीय अधधकरण, ऩुणे / ITAT, Pune

ASSISTANT COMMSSIONER OF INCOME-TAX vs. M/S. BAFNA BUILDERS & LAND DEVELOPERS, JALGAON

What did the Tribunal hold?

What were the facts?

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