The assessee's appeal was filed against the order of the CIT(A) for the assessment year 2008-09. The tax effect in this case was less than Rs. 20 lakhs.

What were the issues?

Whether the CBDT circular regarding tax effect is binding on the revenue and if an appeal with tax effect below Rs. 20 lakhs should be withdrawn.

ACIT vs A.Vivekanandan | ITAT Chennai 2018

Q: What did the Tribunal hold?

The Tribunal noted that the CBDT Circular No. 3/2018 instructs officers to withdraw appeals pending before the ITAT where the tax effect is less than Rs. 20 lakhs. The Tribunal held this circular to be binding on the department.

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

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

For Appellant: Shri Hari Govind, JCIT

For Respondent: Shri S. Sridhar,, Advocate

Hearing: 04.12.2018Pronounced: 04.12.2018

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) -18, Chennai, dated 31.08.2017 and pertains to assessment year 2008-09.

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 4th December, 2018 at Chennai.

ACIT CENTRAL CIRCLE 2(4), CHENNAI vs. A.VIVEKANANDAN, CHENNAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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