What did the Tribunal hold?

The Tribunal noted that the CBDT instructions mandate not to file appeals where the tax effect is below ₹10 lakhs. Since the tax effect in this case was below the threshold, the appeal was considered not maintainable.

The Revenue filed an appeal before the ITAT against the order of the CIT(A) for the assessment year 2006-07. The tax effect in this appeal was less than ₹10 lakhs.

What were the issues?

Whether an appeal filed by the Revenue is maintainable when the tax effect is below the threshold limit prescribed by CBDT instructions.

ACIT vs Foresight Corporation Limited | ITAT Chennai 2018

Income Tax Appellate Tribunal, ‘B’ SMC BENCH, CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI ABRAHAM P. GEORGE

Hearing: 05.06.2018Pronounced: 05.06.2018

आदेश /O R D E R

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

This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals) -12, Chennai, dated 11.08.2017 and pertains to assessment year 2006-07.

No one appeared for the assessee. We heard Shri B.

Sagadevan, the Ld. Departmental Representative. Admittedly, the tax effect in this appeal is less than ₹10 lakhs. The CBDT, being the highest administrative body for administration of direct taxes, instructed its officers not to file appeal before this Tribunal wherever the tax effect is less than ₹10 lakhs. In this case, the tax effect is less than ₹10 lakhs. So, it is obvious that the Revenue authorities filed appeal contrary to the instruction issued by the CBDT. Therefore, the appeal is not maintainable. Accordingly, the same is dismissed.

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

Order pronounced in the open court on 5th June, 2018 at Chennai.

ACIT NON CORPORATE CIRCLE 10(1), CHENNAI vs. FORESIGHT CORPORATION LIMITED, CHENNAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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