ITO EXEMPTION WARD, SALEM vs. THE BHAVANI EDUCATIONAL SERVICES TRUST, ERODE

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ITA 2966/CHNY/2017Status: DisposedITAT Chennai07 August 2018AY 2012-133 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CBDT circular instructing withdrawal of appeals with a tax effect below Rs. 20 lakhs is binding on the revenue. Therefore, the appeal cannot be proceeded with.

What were the facts?

The Assessing Officer disallowed depreciation on assets whose entire cost was already claimed as application of income. The CIT(A) allowed the assessee's appeal following a High Court decision.

What were the issues?

Whether the revenue can proceed with an appeal when a binding CBDT circular directs withdrawal of appeals with a tax effect below a certain threshold.

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: SHRI GEORGE MATHAN & SHRI S. JAYARAMAN

Hearing: 07.08.2018Pronounced: 07.08.2018

आदेश/ O R D E R

PER S. JAYARAMAN, ACCOUNTANT MEMBER :

1.

The Revenue filed this appeal against the order of Commissioner of Income Tax (Appeals), Salem in dated 20.09.2017 for assessment year 2012-13.

2.

M/s. The Bhavani Educational Services Trust, the assessee, is running; teachers training institute under the name and style “The Best College of Education” and “The Best Teacher Training Institute”, school with hostel under the name and style “The Optimus Public School”. While making the assessment for assessment year 2012-13, the Assessing Officer refused to allow depreciation claimed by the assessee on the assets, whose entire costs have already been claimed as application of income towards the objects of the trust. Aggrieved, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) following the jurisdictional High Court decision in the case of DIT vs M/s. Medical Trust of 7th Day Adventists in TCA No 845 of 2010 dated 08.08.2017 reported in 2017 84 Taxmann.com 202 (Mad) allowed the assessee’s appeal.

3.

Aggrieved, the Revenue filed this appeal. At the time of hearing, the Ld. AR 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. None was appeared for the assessee.

4.

We heard the Ld. DR. We are of the considered opinion that the Circular of CBDT, supra, is binding on the officers of the Department.

:-3-: Therefore, the Revenue cannot proceed further in this appeal. Accordingly, the appeal filed by the Revenue stands dismissed.

5.

In the result, the Revenue’s appeal is dismissed.

Order pronounced in the open court on 07th August, 2018 at Chennai.

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