DCIT, C-1, LUDHIANA vs. M/S GETRAG HI-TECH GEARS (INDIA) PVT. LTD., LUDHIANA

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ITA 1519/CHANDI/2017Status: DisposedITAT Chandigarh05 November 2018AY 2010-113 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 dismissed the Revenue's appeal based on CBDT Circular No. 3/2018, which sets a monetary limit for appeals. The dismissal was due to low tax effect and not on the merits of the case.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order. The assessee's counsel submitted that the tax effect was less than Rs. 20 lacs, which was also admitted by the Revenue's representative.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed due to a low tax effect, considering the applicable CBDT circular.

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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आदेश/Order

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the Revenue against the order dated 28.03.2017 of the Commissioner of Income Tax (Appeals)-2, Ludhiana [hereinafter referred to as CIT(A)].

2.

At the outset, the Ld. Counsel of the assessee submitted that the tax effect involved in the present case is less than Rs. 20 lacs. The Ld. DR has also fairly admitted that CBDT Circular No. 3/2018 is applicable to this appeal, hence, this appeal of the Revenue is liable to be dismissed.

3.

It may be noted that CBDT vide Circular No. 3/2018 dated 11.07.2018 has revised the monetary limit upto Rs.20 lacs for filing

ITA No. 1519Chd/2017- M/s Getrag Hi-Tech Gears (India) Pvt Ltd, Ludhiana 2

appeals by the Department before the Tribunal and further vide para 13 of

the said Circular it has been clarified that said circular is applicable

retrospectively to the pending appeals also. The Hon’ble Punjab &

Haryana High Court in the case of “Principal CIT of Income Tax Vs.

Surinder Kumar Singhal” ITA No 406-2016 (O&M) vide order dated

30.1.2017 while further relying upon the decision of the Hon'ble Supreme

Court in the case of “CIT Vs. Dhanalekshmi Bank Ltd.” (2015) 373 ITR

526 (SC), has dismissed the appeal of the Revenue without going into the

merits due to low tax effect leaving the question of law open. In view of

the CBDT Circular No. 03/2018 (supra) and in the light of the above

referred to decision of the Hon'ble Jurisdictional Punjab & Haryana High

Court (supra), the present appeal of the Revenue is dismissed due to low

tax effect.

It is, however, clarified that the dismissal of the above appeal shall

not be taken to be affirmation of the order of the CIT(A) on merits. The

legal issue raised by the Revenue is being left open to be adjudicated in an

appropriate case. Order pronounced in the Open Court.

Sd/- Sd/- (अ�नपूणा� गु�ता / ANNAPURNA GUPTA) (संजय गग� / SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member Dated : 05.11.2018 “आर.के.” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

ITA No. 1519Chd/2017- M/s Getrag Hi-Tech Gears (India) Pvt Ltd, Ludhiana 3

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar

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