DCIT, C-1, LUDHIANA vs. M/S RICO CASTING LTD., LUDHIANA

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ITA 405/CHANDI/2018Status: DisposedITAT Chandigarh30 August 2018AY 2014-152 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal based on CBDT Circular No. 3/2018, which revised the monetary limit for filing appeals. The dismissal was due to the low tax effect and did not affirm the CIT(A)'s order on merits.

What were the facts?

The Revenue filed an appeal before the ITAT against the order of the CIT(A) for assessment year 2014-15. The tax effect involved in the appeal was less than Rs. 20 lacs.

What were the issues?

Whether the Revenue's appeal should be dismissed due to low tax effect in light of CBDT Circular No. 3/2018 and jurisdictional High Court decisions.

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, DIVISION BENCH ‘B’, CHANDIGARH

Before: SHRI SANJAY GARG & MS. ANNAPURNA GUPTA

For Appellant: Shri Manjit Singh, Sr.DR
For Respondent: Shri Vipin Gupta, CA
Hearing: 30.08.2018Pronounced: 30.08.2018

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH ‘B’, CHANDIGARH

BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.405/Chd/2018 (Assessment Year : 2014-15) The D.C.I.T., Vs. M/s Rico Casting Limited, Circle 1, B-26, Focal Point, Ludhiana. Ludhiana. PAN: AADCR4805Q (Appellant) (Respondent)

Appellant by : Shri Manjit Singh, Sr.DR Respondent by : Shri Vipin Gupta, CA Date of hearing : 30.08.2018 Date of Pronouncement : 30.08.2018 ORDER PER ANNAPURNA GUPTA, A.M. :

This appeal has been preferred by the assessee against

the order of Ld. Commissioner of Income Tax (Appeals)-1,

Ludhiana dated 24.1.2018 relating to assessment year

2014-15.

2.

At the outset, the Ld. AR has stated that 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 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

ITA No.16/Chd/2018 2 A.Y.2013-14

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.

4.

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.

5.

In the result, the Departmental appeal is dismissed.

Order pronounced in the Open Court.

Sd/- Sd/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 30th August, 2018 *Rati* Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR

Assistant Registrar, ITAT, Chandigarh

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