DCIT, CIR-5(1), KOLKATA, KOLKATA vs. M/S. PUNE PROPERTIES PVT. LTD., KOLKATA

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ITA 1438/KOL/2016Status: DisposedITAT Kolkata04 January 2018AY 2010-112 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 should not be proceeded with as per CBDT Circular No. 21/2015, which directs withdrawal or non-pressing of appeals with a tax effect below Rs. 10 lacs before the ITAT. The circular applies retrospectively to pending appeals.

What were the facts?

The Revenue filed an appeal against the order of the CIT(A) for AY 2010-11. The assessee did not appear for the hearing. The tax effect in the appeal was below Rs. 10 lacs.

What were the issues?

Whether the Revenue's appeal should be dismissed in limine due to low tax effect as per CBDT Circular No. 21/2015.

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “D” BENCH: KOLKATA

Hearing: 04.01.2018Pronounced: 04.01.2018

ORDER Per Shri A.T.Varkey, JM This appeal has been filed by the revenue against the order of Ld. CIT(A)-2, Kolkata dated 12.04.2016 for AY 2010-11.

2.

None appeared on behalf of the assessee. At the outset, we find that the tax effect in this case is below Rs. 10 lacs. Hence, departmental appeal should not be allowed to be proceeded with. We find that 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

Pune Properties Pvt. Ltd., AY: 2010-11 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, the appeal of revenue is dismissed. Order is pronounced in the open court. Sd/- Sd/- (Waseem Ahmed) (Aby. T. Varkey) Accountant Member Judicial Member Dated : 4th January, 2018 Jd.(Sr.P.S.) Copy of the order forwarded to:

1. 1. Appellant – DCIT, Circle-5(1), Kolkata Respondent –. M/s. Pune Properties Pvt. Ltd., 7., Mangoe Lane, 1st floor, 2 Kolkata-700 001.

3. The CIT(A) Kolkata.

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