THE ITO (INTERNATIONAL TAXATION)-1, AHMEDABAD vs. M/S. ADANI POWER RAJASTHAN LTD., AHMEDABAD

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ITA 1531/AHD/2017Status: DisposedITAT Ahmedabad19 December 20173 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that as per the CBDT Circular No. 3 of 2018, appeals with a tax effect below Rs. 20 lacs are to be dismissed. The Revenue's appeals were therefore dismissed as not maintainable.

What were the facts?

The Revenue filed appeals before the ITAT. The tax effect in these appeals was less than Rs. 20 lacs, which is the monetary limit for filing appeals as per CBDT Circular No. 3 of 2018.

What were the issues?

Whether appeals filed by the Revenue with a tax effect below the prescribed monetary limit are maintainable before the Tribunal.

Which sections of the Income-tax Act were involved?

Section 200A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED&

For Appellant: Shri Sumit Kumar Verma, Sr. D.R
For Respondent: Shri Vijay Ranjan, A.R
Pronounced: 10.05.2019

PER Ms. MADHUMITA ROY - JM: Both the captioned appeals filed by the Revenue are against the same order dated 10.04.2017 passed by the Commissioner of Income Tax (Appeals)- 8, Ahmedabad under section 200A of the Income Tax Act, 1961 arising out of the orders dated 03.11.2015 & 28.01.2016 for the Assessment Year 2016-17

2.

At the time of the hearing, we observe that the tax effect in the appeals filed by the Revenue is less than Rs. 20 lacs. As per the Circular No. 3 of 2018 dated 11/07/2018 issued by CBDT recently all pending appeals filed by Revenue are liable to be dismissed/ withdrawn/ not pressed to reduce the ITO vs.Adani Power Rajasthan Ltd. Asst.Year –2016-17 litigation where the tax effect does not exceed the prescribed monetary limit, i.e., Rs.20 Lacs. The relevant extract of the circular is reproduced below:

“2. In supersession of the above Circular, it has been decided by the Board that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified below.

3.

Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:

S. Appeals/ SLPs in Income-tax matters Monetary Limit No. (Rs.)

1.

Before Appellate Tribunal 20,00,000

2.

Before High Court 50,00,000

3.

Before Supreme Court 1,00,00,000

The monetary limit for filing the appeals by the Revenue before the Tribunal has been increased to Rs. 20 Lacs. It is also clarified in the said Circular that the said monetary limit is applicable retrospectively even to the appeals pending before the Tribunal. The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.20 lacs may be withdrawn / not pressed.

In the case on hand, it was noticed that the tax effect on the disputed issues raised by the Revenue is claimed to be less Rs.20 Lacs. Therefore appeals of the Revenue are required to be dismissed in limine in terms of the above circular.

3.

The Ld. DR for the Revenue fairly agreed on the applicability of the CBDT Circular No. 3 of 2018. Accordingly, the appeals of the Revenue are dismissed as not maintainable. However, the Revenue is on the liberty to ITO vs.Adani Power Rajasthan Ltd. Asst.Year –2016-17 move the miscellaneous application to recall the orders if the tax effect exceeds the threshold limit or the cases of the Revenue falls in any of the exception provided in the aforesaid CBDT Circular in any manner. The MA shall be filed within the prescribed time. Hence the appeals of the Revenue are dismissed.

4.

In the result, both the appeals filed by the department are dismissed. This Order pronounced in Open Court on 10/05/2019 ( WASEEM AHMED ) ( Ms. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER

Ahmedabad; Dated 10/05/2019 Priti Yadav, Sr.PS

आदेश क" ""त"ल"प अ"े"षत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant

2.

""यथ" / The Respondent. 3. संबं"धत आयकर आयु"त / Concerned CIT 4. आयकर आयु"त(अपील) / The CIT(A)-8, Ahmedabad.

5.

"वभागीय ""त"न"ध, आयकर अपील"य अ"धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड" फाईल / Guard file. आदेशानुसार/ BY ORDER, स"या"पत ""त //// उप/सहायक पंजीकार (Dy./Asstt.

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