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Income Tax Appellate Tribunal, ‘a’ BENCH : BANGALORE
Before: SHRI VIJAY PAL RAO & SHRI INTURI RAMA RAO
This appeal has been filed by the revenue directed against the order dated 30-05-2014 of CIT (A)-IV, Bangalore, for assessment year 2008-09.
When the appeal was taken up for hearing learned counsel for the assessee pointed out to the learned DR that tax effect involved in this appeal is less than Rs.10 lakhs for the impugned assessment year and therefore, by virtue of Circular No.21/2015, dated10.12.2015, issued by the CBDT in exercise of the powers conferred in it by subsection (1) of S.268A, we are of the view that the appeal filed herein should not have been pressed by the Revenue. The Learned Departmental Representative fairly admitted that the revenue effect in this appeal is less than the prescribed limit in para-3 of the above circular issued by the CBDT. Having regard to the circumstances of the case, we dismiss the appeal of the revenue as withdrawn/not pressed, as pronounced in the open court.
However, the revenue is at liberty to move appropriate application/petition in case, it is found that the case is covered by one of the exception(s) carved out in the said Circular.
Ld. DR submitted that para 8 of the circular was not applicable in this case. Therefore he did not object to the application of the circular. However Ld DR stated that existence or not of any revenue audit objections leading to the filing of the appeal needed to be ascertained.
We have perused the orders and heard the contentions. Para 4 of the circular No.21/2015 (supra) is reproduced hereunder :
“4. For this purpose, “tax effect” means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed (hereinafter referred to as “disputed issues”). However the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.”
The tax effect on the issues that is disputed by the revenue is less than Rs.10 lakhs for the impugned assessment year.
Constitutional validity of any provisions of the Act or Rules nor the legality or vires of any Board order, Notification, Instruction or Circular was an issue before the lower authorities. The revenue has not brought to our notice anything to show that the appeal arose on an issue emanating from any Revenue Audit Objections accepted by the Department. Addition giving rise to the appeals does not relate to any undisclosed foreign assets / bank accounts. Thus we find that the circular No.21/ 2015 (supra) is squarely applicable in this case.
However if Revenue, at a later stage find that appeal arise out of issues emanating from audit objection it will be free to file MP for recalling this order.
In the result, the appeal of the revenue is dismissed.
Order pronounced in the open court on 24th March, 2016.