INCOME TAX OFFICER WARD-1 , HOSPET vs. M/S MAHAVEERA MINORITY CREDIT CO-OPERATIVE SOCIETY LTD , HUVINAHADAGALI

None appeared on behalf of the assessee but it was noticed that the tax effect in this appeal of the revenue is much below Rs. 10 Lacs and hence, this appeal was heard ex parte qua the assessee. At the very outset, it was pointed out by the bench that the tax effect in this appeal is much below Rs. 10 Lacs because the returned income is nil and the assessed income is Rs. 549,960/- only and hence, even if the entire addition is deleted by CIT (A) and the revenue is in appeal for entire such deletion, then also, the tax effect will be much below Rs. 10 lacs and as per the latest CBDT instructions, the revenue is not supposed to file an appeal before the tribunal if tax effect is less than Rs. 10 Lacs. The bench wanted to know as to how this appeal is maintainable because of low tax effect. In reply, Learned DR of the revenue had nothing to say and he simply supported the assessment order.

In view of the above discussion, this appeal of the revenue is dismissed as not maintainable on account of low tax effect.

In the result, the appeal of the revenue is dismissed.