ITO, NABHA vs. M/S GOLDEN FOOD PRODUCTS, NABHA

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ITA 282/CHANDI/2018Status: DisposedITAT Chandigarh04 October 2018AY 2013-143 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 appeals due to low tax effect, as per CBDT Circular No. 3/2018 and jurisdictional High Court decisions. The dismissal is not an affirmation of the lower appellate authority's orders on merits.

What were the facts?

The Revenue filed appeals before the ITAT. The assessee's counsel pointed out that the tax effect was less than Rs. 20 lacs, making the appeals eligible for dismissal under a CBDT circular. The Revenue's counsel conceded this point.

What were the issues?

Whether appeals filed by the Revenue should be dismissed on grounds of low tax effect, irrespective of the merits of the case, based on CBDT circulars and judicial precedents.

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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आदेश/Order Per Bench: The captioned appeals have been preferred by the assessee against the separate orders of the Commissioner of Income Tax (A) [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 appeals is less than Rs. 20 lacs. The Ld. DR

ITA No. 680/Chd/2016 & 282/Chd/2016- M/s Golden Food Products, Tehsil Nabha. 2

has also fairly admitted that CBDT Circular No. 3/2018 is applicable to

this appeals, hence, this appeals of the Revenue are 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

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 appeals of the Revenue are dismissed due to low

tax effect.

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

not be taken to be affirmation of the orders 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 on 04.10.2018

Sd/- Sd/- बी.आर.आर, कुमार संजय गग� ( B.R.R. KUMAR) (SANJAY GARG ) लेखा सद�य/ Accountant Member �याय�क सद�य/ Judicial Member

Dated : 4.10.2018 Rkk

ITA No. 680/Chd/2016 & 282/Chd/2016- M/s Golden Food Products, Tehsil Nabha. 3

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

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar

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