What did the Tribunal hold?

The Tribunal held that the CBDT Circular No. 3/2018, which instructs to withdraw appeals with a tax effect below ₹20 lakhs, is binding on the Revenue officers. Therefore, the appeal could not proceed.

The Revenue filed an appeal against the order of the CIT(A) for the assessment year 2011-12. Both the Revenue and the assessee's representative submitted that the tax effect was less than ₹20 lakhs.

What were the issues?

Whether the Revenue is bound by the CBDT circular to withdraw appeals with a low tax effect.

ITO vs K.Rajalingam, Dharmapuri | ITAT Chennai 2018

Income Tax Appellate Tribunal, ‘ B’ SMC BENCH : CHENNAI

Before: SHRI GEORGE MATHAN

आदेश / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER

This is an appeal filed by the Revenue against the order of the Commissioner of Income-tax (Appeals)-3, Chennai in dated 28.03.2018 for the assessment year 2011-12.

Mr.Dinesh represented on behalf of the Assessee and Mr.B.Sagadevan represented on behalf of the Revenue.

ITA No.1874/18 :- 2 -:

3. When the appeal is taken up for hearing, the representative of the Revenue and the Authorised Representative of assessee fairly submitted that the tax effect involved in this appeal is less than `20 lakhs. It was a submission that the CBDT in its latest 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, the appeal filed by the Revenue stands dismissed.

In the result, the appeal filed by the Revenue is dismissed.

Order pronounced in the open court after conclusion of hearing on 19th November, 2018, at Chennai.

ITO WARD 1, DHARMAPURI vs. K.RAJALINGAM, DHARMAPURI

What did the Tribunal hold?

What were the facts?

What were the issues?

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