DCIT, CIR-40, KOLKATA, KOLKATA vs. BALAJI AGRO INTERNATIONAL, KOLKATA

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ITA 774/KOL/2015Status: DisposedITAT Kolkata09 May 2018AY 2009-20102 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal of the Revenue deserved to be dismissed in terms of CBDT Circular No. 21/2015 due to low tax effect. The appeal was dismissed in limine without going into the merits.

What were the facts?

The Revenue appealed against the deletion of an addition of Rs. 23,30,946/- by the CIT(A) for AY 2009-10. The tax effect of this deletion was below Rs. 10 lakhs.

What were the issues?

Whether the Revenue's appeal should be dismissed on the grounds of low tax effect as per CBDT circular, despite the merits of the case.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “C” BENCH: KOLKATA

Hearing: 21.02.2018Pronounced: 09.05.2018

Per Shri A.T.Varkey, JM

1.

1. The appeal filed by the revenue is against the order of Ld. CIT(A)-12, Kolkata dated 26.03.2015 for AY 2009-10.

2.

We note that during hearing, the appeal was argued on merits by both the parties ground wise. However, at the time of giving dictation, we note that the assessee declared total income of Rs.2,76,85,222/- and the AO u/s. 143(3) of the Act assessed it at Rs.3,00,16,168/-, which means the AO made addition of Rs. 23,30,946/- which has been deleted by the Ld. CIT (A) against which department is in appeal before us. So we note that the tax effect for deletion of Rs 23,30,946/- is below Rs 10 lakhs and resultantly the appeal of the revenue falls in the ken of the CBDT Circular no. 21/2015 dated 10.12.2015, wherein the CBDT has directed the department to withdraw/not press the appeal if the tax effect is less than Rs. 10 lacs before the ITAT. On perusal of the Circular No. 21 / 2015 dated 10.12.2015 and the materials available on record, we find that the revenue’s case does not fall under any of the exception clause as provided in the circular, as this is covered. We also find that the Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. We find that the Circular is binding on the tax authorities. This position has been confirmed by the Hon’ble Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd reported in 267 ITR 272 (SC). Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No.21 / 2015 dated 10.12.2015. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as unadmitted, without going into the merits of the case. In case the revenue later finds that the tax effect is more than Rs. 10 lakhs then it is at liberty to move appropriate application to recall this order. With this Caveat, we are inclined to dismiss this appeal of the revenue on the ground that it is below the tax effect of less than Rs.10 lakh.

3.

In the result, appeal of revenue is dismissed.

Order is pronounced in the open court on 09.05.2018 Sd/- Sd/- (M. Balaganesh) (Aby. T. Varkey) Accountant Member Judicial Member Dated : 9th May, 2018 Jd.(Sr.P.S.) Copy of the order forwarded to:

1.

Appellant – DCIT, Circle-40, Kolkata. 2 Respondent – Balaji Agro International, 10, Princep Street, Kolkata-700 072. 3. The CIT(A) Kolkata.

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