What did the Tribunal hold?

The Tribunal held that the CBDT Circular No. 3/2018, instructing withdrawal of appeals with a tax effect below Rs. 20 lakhs, is binding on the Revenue. Therefore, the Revenue cannot proceed with the appeal.

The assessee's appeal was filed against the order of the CIT(A) for the assessment year 2009-10. The tax effect in the case was less than Rs. 20 lakhs.

What were the issues?

Whether the Revenue can proceed with an appeal where the tax effect is below the threshold stipulated by the CBDT circular.

DCIT vs K.R.V.Infrastructurs, Dindigul | ITAT Chennai 2018

Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI S. JAYARAMAN

For Appellant: Shri M. Mathivanan, DCIT

For Respondent: Shri K.B. Muralidharan, CA

Hearing: 05.12.2018Pronounced: 05.12.2018

आदेश /O R D E R

PER N.R.S. GANESAN, JUDICIAL MEMBER:

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-1, Madurai, dated 15.05.2017 and pertains to assessment year 2009-10.

On hearing the Ld. Departmental Representative, we find that the tax effect in this case is less than `20 lakhs. The CBDT in its Circular No.3/2018 dated 11.07.2018 instructed its officers to withdraw all the appeals pending before the ITAT where the tax effect is less than `20 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.

Order pronounced in the open court after conclusion of hearing on 5th December, 2018 at Chennai.

DCIT CIRCLE 1, DINDIGUL vs. K.R.V.INFRASTRUCTURS, DINDIGUL

What did the Tribunal hold?

What were the facts?

What were the issues?

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