ITO, WD-1(2), KOLKATA, KOLKATA vs. M/S PEARL TRANSPORT COMPANY LTD, KOLKATA

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ITA 802/KOL/2014Status: DisposedITAT Kolkata13 July 2017AY 2006-20072 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 should be dismissed in limine due to low tax effect, as per CBDT Circular No. 21/2015 which is binding on tax authorities.

What were the facts?

The Revenue filed an appeal against the order of the CIT(A) for Assessment Year 2006-07. The tax effect in the appeal was below the threshold stipulated by CBDT Circular No. 21/2015.

What were the issues?

Whether the Revenue's appeal should be dismissed based on the monetary limit prescribed by CBDT Circular No. 21/2015 for appeals before the ITAT.

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “B” BENCH: KOLKATA

Hearing: 13.07.2017Pronounced: 13.07.2017

ORDER

Per Shri A.T.Varkey, JM

1.

This is an appeal filed by the revenue against the order of Ld. CIT(A)-XX, Kolkata dated 20.01.2014 for AY 2006-07.

2.

At the outset, 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 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 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.

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