What did the Tribunal hold?

The Tribunal noted that the CBDT circular instructed officers to withdraw appeals with a tax effect below ₹20 lakhs. Therefore, the Revenue could not proceed with these appeals.

The Revenue filed appeals against the orders of the CIT(A) for assessment years 2006-07 and 2008-09. Both parties agreed that the tax effect in these appeals was less than ₹20 lakhs.

What were the issues?

Whether the Revenue's appeals should be withdrawn based on the CBDT's instruction regarding tax effect thresholds.

ACIT vs M/S Aban Informatics Ltd | ITAT Chennai 2018

Income Tax Appellate Tribunal, ‘ A’ BENCH : CHENNAI

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

PER N.R.S. GANESAN, JUDICIAL MEMBER :

Both the appeals of the Revenue are directed against the common order of the Commissioner of Income-tax (Appeals)-3, Chennai dated 30.11.2017 for the assessment years 2006-07 & 2008-09. Since both the appeals are related to the same assessee, therefore, we heard these appeals together and disposing of the same by this common order.

When the appeals are taken up for hearing, both the representatives for the Revenue and the Counsel for the assessee very fairly submitted that the tax effect involved in both these appeals is less than `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 `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 these appeals. Accordingly, both the appeals filed by the Revenue stands dismissed.

In the result, both the appeals of the Revenue are dismissed.

Order pronounced in the open court after conclusion of hearing on 18th July, 2018, at Chennai.

ACIT CORPORATE CIRCLE 1(1), CHENNAI vs. M/S ABAN INFORMATICS LTD, CHENNAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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