THE DCIT, CIRCLE - 2(1), MANGALORE vs. M/S SCS HOSPITALS PRIVATE LIMITED, MANGALORE

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ITA 198/PAN/2018Status: DisposedITAT Bangalore30 April 2024AY 2014-15Bench: SHRI CHANDRA POOJARI (Accountant Member), SMT BEENA PILLAI (Judicial Member)3 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 no appeal should be filed by the Revenue before the Tribunal where the tax effect is below Rs. 50 lakhs, as per the CBDT circular. The appeal was dismissed on the grounds of low tax effect.

What were the facts?

The Revenue filed an appeal before the ITAT. The tax effect in the disputed amount was found to be below Rs. 50 lakhs, which is covered by CBDT Circular No. 17/2019.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the ITAT given the low tax effect, in light of the applicable CBDT circular.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE

Before: SHRI CHANDRA POOJARI & SMT BEENA PILLAI

For Appellant: Smt. Sheetal Borkar, Advocate, Shri Narendra Kumar Naik, Addl

Date of Hearing : 30-04-2024 Date of Pronouncement : 30-04-2024 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal filed by the revenue arises out of order dated 26/02/2018 passed by the Ld.CIT(A), Mangaluru for A.Y. 2014- 15.

2.

At the time of hearing, it was brought to the knowledge of the Bench that the tax on disputed amount in this case is below Rs.50 lakhs, therefore covered by CBDT Circular No.17/2019 dt.8.8.2019. We find as per the CBDT Circular No.17/2019 dt.8.8.2019, no appeal shall be filed by the Revenue before the Page 2 of Tribunal where the tax effect is below Rs.50 lakhs. In the present case, the Assessing Officer has raised tax demand vide order dt. 29/12/2016 for the assessment year under consideration is Rs.1,55,03,390/-. Tax excluding interest/cess would be approx. Rs.46,00,000/-.

3.

The Ld.DR has accepted the low tax effect in this appeal. Further the Circular of the CBDT is applicable to the pending cases. Since, the tax demand raised by the revenue authority is below Rs.50 lakhs in each appeal and the circular is also applicable to the pending appeals. The present appeal is liable to be dismissed on low tax effect.

3.1 Under these set of facts, the revenue is given liberty to move appropriate application for recall of the present order in accordance with the law, if it is subsequently found that the issue contested in the this appeal is covered by any of the exceptions in the CBDT circular. Accordingly, we dismiss the Revenue’s appeal on maintainability and low tax effect. In the result, the appeal filed by the revenue stands dismissed. Order pronounced in the open court on 30th April, 2024.

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