ITO, COIMBATORE vs. K.RAMGOPAL, COIMBATORE

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ITA 409/CHNY/2017Status: DisposedITAT Chennai17 September 2018AY 2007-083 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CBDT Circular No. 3/2018, which instructs withdrawal of appeals with a tax effect less than Rs. 20 lakhs, is binding on the Revenue. Therefore, the appeal could not proceed.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing deduction under Section 54 for house construction. The assessee, a cotton dealer, had claimed a deduction on capital gains, which was initially disallowed by the AO but allowed by the CIT(A).

What were the issues?

Whether the appeal filed by the Revenue should be dismissed based on the CBDT's monetary limit for appeals. The eligibility of the assessee for deduction under Section 54 was also a point of contention.

Which sections of the Income-tax Act were involved?

Section 54,Section 139(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, CHENNAI

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

Hearing: 17.09.2018Pronounced: 17.09.2018

आदेश/ O R D E R

PER S. JAYARAMAN, ACCOUNTANT MEMBER:

1.

The Revenue filed this appeal against the order of the Commissioner of Income Tax (Appeals)-2, Chennai in dated 31.10.2016 for assessment year 2007-08.

2.

Shri. K. Ramgopal, the assessee, is a Cottom Dealer. The issue in this appeal is about the computation of long term capital gains, wherein the :- 2 -: AO. However, the Ld. CIT(A) directed the AO to grant deduction on investment made on house construction u/s. 54 and allowed the appeal. Aggrieved, the Revenue filed this appeal pleading that the Ld. CIT(A) erred in directing the AO to allow the claim of deduction u/s. 54, even though, the assessee had not invested entire capital gains within the due date as mentioned u/s. 54 and also not within the due date for filing the return u/s. 139(1). At the time of hearing, the Ld. DR submitted that the tax effect involved in this appeal is less than Rs. 20 lakhs.

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 Rs. 20 lakhs.

3.

We heard the above submissions, we are of the considered opinion that the Circular of the CBDT, supra, 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.

4.

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

Order pronounced in the Open Court on 17th September, 2018 at Chennai.

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