INCOME TAX OFFICER, WARD 1, BIJAPUR vs. SRI SHASHIKANT D MAHINDRAKAR, BIJAPUR

These are appeals filed by Revenue directed against orders of CIT (A), Belgaum for A. Y. 1997-98. & 1245/Bang/2014 S/Shri Shashikant D.Mahindrakar & Ramakant D.Mahindrakar Page 2 of 3 02. When the appeals were taken up for hearing Ld. Counsel for the Assessees pointed out to the Ld. DR that tax effect involved in these appeals were less than Rs.10 lakhs for the impugned assessment years and therefore by virtue of Circular No.21/2015, dt.10.12.2015, were below the limits laid down for filing appeals before this Tribunal.

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.”