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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
PER DUVVURU RL REDDY, Judicial Member :
This appeal filed by the Revenue is against the order of the Ld. Commissioner of Income Tax (Appeals), Vijayawada [“Ld. CIT(A)”] in Appeal No. 46/KMM/CIT(A)/VJA/04-05, dated 19/01/2005 arising out of the order passed U/s. 143(3) of the Income Tax Act, 1961 [“the Act”] for the AY 2001-02.
2 2. In this appeal, the Revenue has raised the following grounds of appeal: “1. The Ld. CIT(A) is not correct in deleting the addition of Rs. 28,36,974/-.
2. The Ld. CIT(A) is not correct in holding that the provisions of section 40A(3) are not applicable on the expenditure of Rs. 1,41,84,871/- which was not disallowed.
3. The Ld. CIT(A) ought to have appreciated that the AO in arriving at the expenditure for application of provisions of section 40A(3) has reduced an amount of Rs. 69,33,623/- disallowed as bogus out of total expenditure of Rs. 2,11,18,394/-.
4. The Ld. CIT(A) ought to have upheld the disallowance made U/s. 40A(3) on the expenditure of Rs. 1,41,84,871/- which expenditure was not treated as bogus.
5. Any other ground that may be urged at the time of hearing.”
3. At the outset, the Ld. Departmental Representative submitted before us that this appeal may be withdrawn as the tax effect involved in the case is below Rs.50 Lakhs. The Ld. AR did not object to the submission of the Ld. DR.
The CBDT vide Circular No.17/2019 dated 08.08.2019 has revised the monetary limit for filing the appeals before the Tribunal to Rs.50 Lakhs. Further, CBDT vide letter dated 20.08.2019 has also clarified that Circular No.17/2019 would be applicable to all pending appeals. In such circumstances, the present appeal filed by the Revenue is not maintainable considering the low tax effect involved therein. It is ordered
3 accordingly and the appeal of the Revenue is dismissed with a liberty to the Department to file a Miscellaneous Application before the Tribunal for recalling the order, if the requisite material is brought in to show that the appeal is protected by the exceptions prescribed in para-10 of the Circular dated 11.07.2018.
In the result, appeal of the Revenue is dismissed.
Pronounced in the open Court on 29th July, 2024.
Sd/- Sd/- (एस बालाकृ�णन) (दु�वू� आर.एल रे�ी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सद�य/ACCOUNTANT MEMBER �याियकसद�य/JUDICIAL MEMBER Dated :29/07/2024 OKK - SPS आदेश की �ितिलिप अ�ेिषत /Copy of the order forwarded to:- 1. िनधा�रती/ The Assessee – M/s. Chandra Sekhara Transport, D.No.2-1- 6, Flat No. 302, Opp BHPV, Visakhapatnam, Andhra Pradesh. 2. राज�व/The Revenue – Asst. Commissioner of Income Tax, Circle-1, Aayakar Bhavan, Behind Kinnerasani Theatre, Rajiv Gunj, Khammam.
The Principal Commissioner of Income Tax, 4.आयकर आयु� (अपील)/ The Commissioner of Income Tax (Appeals), 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, िवशाखापटणम/ DR, ITAT, Visakhapatnam 6.गाड� फ़ाईल / Guard file आदेशानुसार / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam