What did the Tribunal hold?

The Tribunal dismissed the appeal as not maintainable due to low tax effect, as per CBDT Circular No. 21 of 2015. The tax effect was below the prescribed limit of Rs. 10 lacs and did not fall under any exemption clauses.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the Tribunal considering the low tax effect as per CBDT Circular No. 21 of 2015.

ITO vs Shri Vinit Ashokkumar Agrawal | ITAT Ahmedabad 2017

Q: What were the facts?

The Revenue appealed the CIT(A)'s order deleting an addition of Rs. 47,15,735/- on account of long-term capital gain. The assessee failed to appear for the hearing.

Income Tax Appellate Tribunal, “ SMC ” BENCH, AHMEDABAD loZJh egkohj izlkn] U;kf;d lnL; ,oa vejthr flag] ys[kk lnL; ds le{kA loZJh egkohj izlkn] U;kf;d lnL; ,oa vejthr flag]

Before: SHRI MAHAVIR PRASAD & SHRI AMARJIT SINGH

Pronounced: 25/09/2017

PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER :

This is an appeal by the department against the order of the Commissioner of Income Tax(Appeals)-10, Ahmedabad, dated 21/06/2016 for the Assessment Year (AY) 2012-13, on the following Grounds: “That the ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.47,15,735/- on account of long term capital gain.” Asst.Year –2012-13 mentioned above since the assessee has failed to disclose his true income/book profit. The appellant prays that the order of CIT(A)on the above grounds be set aside and that of the Assessing Officer be restored to be above extent. The appellant craves, to amend or to alter any ground or add a new ground which may be necessary.

At the time of hearing, none appeared on behalf of the respondent assessee. We find that the appeal of the Revenue needs to be dismissed on account of low tax effect in view of the CBDT Circular No.21 of 2015 dated 10.12.2015. The ld. Departmental Representative fairly admitted that the tax effect is less than the limit prescribed by the aforesaid CBDT Circular.

We have heard the learned DR and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of CBDT Circular No. 21/2015 in F.No.279/Misc. 142/2007-ITJ (Pt) dated 10th December 2015, vide which it has been provided that if the tax effect by virtue of the Commissioner of Income- tax (Appeals)’s order is below Rs. 10 lacs, then that order would not be challenged before the Tribunal in further appeal. The Board has provided exemptions at clause (8) of the Instructions wherein it has been provided that these instructions will not be applicable, if vires of any provisions has been quashed by impugned order or addition was made on some audit objections or the addition relates to undisclosed foreign assets/bank accounts, etc. We find that the present case does not fall Asst.Year –2012-13 within the exemption clause and the tax is less than Rs.10 lacs. Therefore, the present appeal is not maintainable and hence dismissed.

In the result, the appeal filed by the Revenue is dismissed in limine. This Order pronounced in Open Court on 25/09/2017 vejthr flag vejthr flag vejthr flag महावीर "साद vejthr flag (लेखा सद"य) ("या"यक सद"य) Ahmedabad; Dated 25/09/2017

आदेश क" ""त"ल"प अ"े"षत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant

""यथ" / The Respondent. 3. संबं"धत आयकर आयु"त / Concerned CIT 4. आयकर आयु"त(अपील) / The CIT(A)-10, Ahmedabad "वभागीय ""त"न"ध, आयकर अपील"य अ"धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड" फाईल / Guard file. आदेशानुसार/ BY ORDER, स"या"पत ""त //// उप/सहायक पंजीकार (Dy./Asstt.

THE ITO, WARD-1(2)(4), AHMEDABAD vs. SHRI VINIT ASHOKKUMAR AGRAWAL, AHMEDABAD

What did the Tribunal hold?

What were the facts?

What were the issues?

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