What did the Tribunal hold?

The Tribunal held that by virtue of CBDT Circular No. 21/2015, the appeals of the Revenue would not lie before the Tribunal as the tax effect was less than Rs. 10,00,000. No specific ground related to audit objections was raised by the Revenue.

The Revenue filed appeals against the CIT(A)'s order for assessment years 2006-07, 2007-08, and 2008-09. The assessee pointed out that the tax effect on the total income for these years was below Rs. 10,00,000.

What were the issues?

Whether appeals filed by the Revenue are maintainable when the tax effect is below the threshold stipulated by CBDT Circulars, and in the absence of specific grounds for filing such appeals.

ACIT vs T.D.Prabhavathi | ITAT Chennai 2018

Income Tax Appellate Tribunal, ‘A’ BENCH : CHENNAI

Before: SHRI ABRAHAM P. GEORGE & SHRI DUVVURU RL REDDY]

For Respondent: Shri. D. Palanivel, Advocate

आदेश / O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER These are appeals filed by the Revenue directed against an order dated 13.09.2017 of ld. Commissioner of Income Tax (Appeals)- 18, Chennai for the impugned assessment years.

ITA Nos.3118 to 3120//17 :- 2 -:

Ld. Counsel for the assessee at the outset pointed out that tax effect on total income for the impugned assessment years where less than ten years. He has also filed a table which reads as under:

Issue A.Y. Income Addition Computation Tax effect assessed on total income (in �)

2006-07 6,27,000 4,85,000 Income Tax 1,34,600 Agricultural Ed.Cess 2% 2,692 Total 1,37,292 income assessed as income 2007-08 16,37,500 15,00,000 Income Tax 4,37,750 from other Surchage 10% 43,775 Ed.Cess 2% 9,631 Total 4,91,156 sources 2008-09 4,72,270 4,72,000 Income Tax 87,181 Ed.Cess 2% 2,615 Total 89,796

Per contra, ld. Departmental Representative, though he did not doubt the correctness of the figure in the above table, submitted that the appeals could have been filed based on audit objections and this was required to be clarified.

We have perused the orders and heard the rival contentions. 4.

In our opinion, if the appeals were filed pursuant to any audit objection, though the disputed income was below the limits mentioned in CBDT Circular 21/2015, dated 10.12.2015, such a ground ought

ITA Nos.3118 to 3120//17 :- 3 -: have been there in the grounds filed by the Revenue. We do not find any such ground raised by the Revenue. By virtue of CBDT Circular No.21/2015, dated 10.12.2015, these appeals of the Revenue will not lie before this Tribunal, since the tax effect is less than �10,00,000/-.

In the result, the appeals of the Revenue stand dismissed. 5.

Order pronounced on Thursday, the 24thday of May, 2018, at Chennai.

ACIT CENTRAL CIRCLE 2(3), CHENNAI vs. T.D.PRABHAVATHI, CHENNAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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