What did the Tribunal hold?

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

The Revenue filed an appeal against the order of the CIT(A) for the assessment year 2012-13. The representative for the Revenue submitted that the tax effect involved in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the appeal filed by the Revenue should be withdrawn in light of the CBDT circular regarding tax effect.

DCIT vs Arjun Chemicals Pvt. Ltd. | ITAT Chennai 2018

Income Tax Appellate Tribunal, ‘ A’ BENCH : CHENNAI

Before: SHRI GEORGE MATHAN & SHRI S.JAYARAMAN

आदेश / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER

This is an appeal filed by the Revenue against the order of the Commissioner of Income-tax (Appeals)-1,Chennai in appeal No.257/15-16A-I dated 23.09.2016 for the assessment year 2012-13.

Shri AR.V.Srinivasan represented on behalf of the Revenue, and none represented on behalf the of the Assessee.

3. When the appeal is taken up for hearing, the representative for the Revenue very fairly submitted that the tax effect involved in this appeal 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 this appeal. Accordingly, the appeal filed by the Revenue stands dismissed.

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

Order pronounced in the open court after conclusion of hearing on 06th August, 2018, at Chennai.

DCIT, CHENNAI vs. ARJUN CHEMICALS PVT. LTD., CHENNAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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