What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal without going into the merits of the case. This was based on the CBDT Circular which raised the monetary limit for tax effect for filing appeals.

The Revenue filed an appeal against the CIT(A)'s order for AY 2010-11. The assessee argued that the appeal should be dismissed due to low tax effect as per CBDT Circular No. 3/2018.

What were the issues?

The primary issue was whether the Revenue's appeal met the minimum tax effect threshold for filing an appeal before the Tribunal as per the latest CBDT circular.

DCIT vs Smt. Sujata Santosh Gawade | ITAT Pune 2018

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI D. KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM

For Appellant: Shri Rajeev Thakkar

For Respondent: Dr. Vivek Aggarwal

आदेश / ORDER

PER VIKAS AWASTHY, JM :

The appeal has been filed by the Revenue against the order of Commissioner of Income Tax (Appeals)-9, Pune dated 30-06-2016 for the assessment year 2010-11.

Shri Rajeev Thakkar appearing on behalf of the assessee submitted at the outset that the appeal of the Revenue is liable to be dismissed on

2 ITA No. 2194/PUN/2016, A.Y. 2010-11

account of low tax effect in terms of recent CBDT Circular No. 3/2018, dated 11-07-2018. The ld. AR furnished working of Tax effect involved in the appeal.

Dr. Vivek Aggarwal representing the Department submitted that as per the working of Assessing Officer the Tax effect involved in the appeal is Rs.21,47,721/-.

Both sides heard. The assessee has furnished calculation of Tax effect involved in the appeal by Revenue. The same is reproduced as under: Sr. No. Particulars Amount (Rs.) 1 Amount in dispute as per Department Appeal 63,98,347/- 2 Tax Liability - (a) Basic Tax @ 30% 19,19,504 (b) Surcharge (No surcharge as per CBDT Circular - dated 11.01.2010 attached) (c) Education Cess @ 3% of (a) 57,585 3 Tax Effect as per Department Appeal 19,77,089

The ld. AR pointed that in the assessment year under appeal there was no levy of surcharge on individuals, HUF and AOP. To support his submissions the ld. AR furnished the copy of Circular No. 1/2010 dated 11-01-2010.

The CBDT vide Circular No. 3/2018, dated 11-07-2018 has raised the monetary limit of tax effect for filing of appeals by the Department before the Tribunal to Rs.20 lakhs. The circular applies to the appeals to be filed by the Department in future, as well as the appeals pending before the Tribunal. Without going into the merit of the issues raised in the

3 ITA No. 2194/PUN/2016, A.Y. 2010-11

appeal, in view of the CBDT Circular the present appeal of the Revenue is dismissed on account of low tax effect.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescribed in para 10 of the Circular (supra).

In the result, the appeal of the Revenue is dismissed.

Order pronounced in the open court at the time of hearing on Wednesday, the 25th day of July, 2018.

Sd/- Sd/- (डी. करुणाकरा राव/D. Karunakara Rao) (ववकास अवस्थी / Vikas Awasthy) ऱेखा सदस्य / ACCOUNTANT MEMBER न्याययक सदस्य / JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 25th July, 2018 RK आदेश की प्रयिलऱवऩ अग्रेवषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2. आयकर आयुक्त (अऩीऱ) / The CIT(A)-9, Pune 3. 4. The Pr. Commissioner of Income Tax-5, Pune ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, “बी” बेंच, 5. ऩुणे / DR, ITAT, “B” Bench, Pune. गाडड फ़ाइऱ / Guard File. 6. //सत्यावऩत प्रयत // True Copy// आदेशानुसार / BY ORDER,

यनजी सधचव / Private Secretary, आयकर अऩीऱीय अधधकरण, ऩुणे / ITAT, Pune

DEPUTY COMMISSIONER OF INCOME-TAX vs. SMT. SUJATA SANTOSH GAWADE, PUNE

What did the Tribunal hold?

What were the facts?

What were the issues?

Recent GST High Court judgments