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Income Tax Appellate Tribunal, CHANDIGARH BENCHES, ‘A’ CHANDIGARH
Before: SHRI SANJAY GARG & Ms. ANNAPURNA GUPTA
Per Annapurna Gupta, AM:
The present appeal has been preferred by the Revenue against the order dated 18.09.2017 of the Commissioner of Income Tax (Appeals)-2, Ludhiana [hereinafter referred to as CIT(A)].
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.
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 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/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 16.07.2018 Rkk Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR