DEPUTY COMMISSIONER OF INCOME-TAX vs. M/S. PARADISE CONSTRUCTION,, PUNE

The Notice of appeal was issued to the assessee on 05-04-2018 for 15-05-2018 through RPAD. On the said date the appeal was adjourned to 17-07-2018. None has appeared on behalf of the assessee.

Shri Mukesh Jha representing the Department fairly admitted that in the present appeal by the Department tax effect is less than Rs.20 lakhs.

We have heard the submissions made by the ld. DR and perused the orders of authorities below. The Revenue is in appeal against the order of Commissioner of Income Tax (Appeals) in allowing assessee’s claim of deduction Rs.48,47,627/- u/s. 80IB(10) of the Act. Undisputedly, the tax effect involved in appeal is less than the monetary limit prescribed by recent CBDT for filing of appeals before the Tribunal by the Department. The CBDT vide circular No. 3/2018, dated 11-07-2018 has raised the monetary limit of tax effect for filing of appeals by the Department before the Tribunal to Rs.20 lakhs. The circular applies to the appeals to be filed by the Department in future, as well as the appeals pending before the Tribunal. Thus, in view of the CBDT circular the present appeal of the Revenue is liable to be dismissed on account of low tax effect.

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