What did the Tribunal hold?

The Tribunal held that the CBDT Circular No.3/2018, which instructs officers to withdraw appeals pending before the ITAT with a tax effect less than ₹20 lakhs, is binding on the Department. Therefore, the Revenue cannot proceed with these appeals.

The Revenue filed two appeals before the ITAT against the orders of the CIT(A) for assessment year 2005-06. The tax effect in these appeals was less than ₹20 lakhs.

What were the issues?

Whether the CBDT Circular regarding tax effect is binding on the Revenue before the ITAT, and if appeals with low tax effect should be dismissed.

DCIT vs V.G.P.Finance Ltd. | ITAT Chennai 2018

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

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

For Respondent: Shri S. Sridhar, Advocate

Hearing: 27.08.2018Pronounced: 27.08.2018

आदेश /O R D E R

PER N.R.S. GANESAN, JUDICIAL MEMBER: Both the appeals filed by the Revenue are directed against the respective orders of the Commissioner of Income Tax (Appeals)-11, Chennai, dated 31.10.2017 and pertain to assessment year 2005-06.

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, both the appeals of the Revenue stand dismissed.

In the result, both the appeals of the Revenue are dismissed. Order pronounced in the open court after conclusion of hearing on 27th August, 2018 at Chennai.

DCIT, CORPORATE CIRCLE 3(2), CHENNAI vs. V.G.P.FINANCE LTD., CHENNAI

What did the Tribunal hold?

What were the facts?

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