What did the Tribunal hold?

The Tribunal noted that the tax effect of the deletion was less than Rs. 10 Lacs. Consequently, the appeal was not admitted due to low tax effect as per Board instructions.

The Revenue appealed against the CIT(A)'s order deleting an addition of Rs. 32,43,496 made by the AO. The assessee's declared income was Rs. 786,060, while the AO assessed it at Rs. 40,29,600.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT due to a low tax effect, as per CBDT instructions.

ITO vs M/S Mahesh Road Links, Gulbarga | ITAT Bangalore 2016

Income Tax Appellate Tribunal, BANGALORE BENCH ‘C’, BANGALORE

Before: SHRI A. K. GARODIA & SMT ASHA VIJAYARAGHAVAN

For Respondent: Shri Tshering Ongda, JCIT

O R D E R PER SHRI A.K.GARODIA, AM

This is a revenue’s appeal directed against the order of learned CIT (A), Gulbarga dated 18.01.2016 for A. Y. 2010 – 11.

None appeared on behalf of the assessee in spite of notice and therefore, this appeal was heard ex parte qua the assessee.

It was pointed out by the bench that the income declared by the assessee in the return of income is Rs. 786,060/- and the income assessed by the A.O. is Rs. 40,29,600/- after addition of Rs. 32,43,496.

Even if the total addition is deleted by CIT (A) and the revenue is in 2 IT(TP)A No.441(B)2016 appeal for the entire such deletion, then also, the tax effect @30% will be less than Rs. 10 Lacs. Then how the appeal of the revenue is maintainable in view of Board Instruction about low tax effect in appeal filed by the revenue before ITAT. In reply, learned DR of the revenue had nothing to say. Hence, this appeal of the revenue is not admitted because of low tax effect.

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

Order pronounced in the open court on the date mentioned on the caption page.

ITO, GULBARGA vs. M/S MAHESH ROAD LINKS, GULBARGA

What did the Tribunal hold?

What were the facts?

What were the issues?

Recent GST High Court judgments