ITO, TIRUPPUR vs. A.G.ACHIATHAL (WIFE AND LEGAL HEIR OF LATE A.C.GOVINDASAMY), KANGEYAM

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ITA 3268/CHNY/2016Status: DisposedITAT Chennai30 August 2018AY 2011-123 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 CBDT Circular No. 3/2018, which instructs withdrawal of appeals with tax effect below Rs. 20 lakhs, is binding on the department. Therefore, the Revenue cannot proceed with the appeal.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order for AY 2011-12. The tax effect in the appeal was found to be 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 in the CBDT circular for withdrawal of appeals.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘ B’ BENCH : CHENNAI

Before: SHRI GEORGE MATHAN & SHRI A.MOHAN ALANKAMONY

आदेश / O R D E R

PER GEORGE MATHAN, JUDICIAL MEMBER

1.

This is an appeal filed by the Revenue against the order of the Commissioner of Income-tax (Appeals)-3, Coimbatore in appeal No.70/16-17 dated 20.09.2016 for the assessment year 2011-12.

2.

Mrs. Ruby George represented on behalf of the Revenue, and Mr.R.Kumar represented on behalf of the Assessee.

3. When the appeal is taken up for hearing, the ld.D.R submitted a copy of letter received from the I.T.O, Tirupur dated 28.08.2018 addressed to The Principal Commissioner of Income Tax-3, Coimbatore & copy to ld.D.R, wherein the A.O clearly mentioned that the tax effect in the appeal No.3268/2016 - c/o. G.Achiathal– PAN:ANSPG 2569 H is `14.86 lakhs for assessment year 2011-12, and also mentioned that the case does not fall under any of the exceptional clause as mentioned in para-10 of Board’s Circular No.3/2018 dated 11.07.2018.

4.

At the outset, the representatives for the Revenue and the assessee very 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.

5.

After considering the A.O’s letter filed by the ld.D.R and the submissions of both the sides, we are of the considered opinion that the Circular of CBDT No.3/2018 dated 11.07.2018 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.

3.

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

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