ITO, WARD-1(2)(2), VADODARA, VADODARA vs. RAJ CONCRETE, NEAR IOC

The instant appeal filed at the behest of the Revenue is directed against the order dated 04.09.2023 passed by the National Faceless Appeal Centre (NFAC), Delhi, arising out of the assessment order passed by the ITO, Ward-1(2)(2), Vadodara (ITO vs. Raj Concrete) A.Y.– 2015-16 - 2 - under Section 143(3) of the Income Tax Act, 1961, (hereinafter referred to as ‘the Act’) for Assessment Year 2015-16.

At the time of hearing of the instant appeal, Ld. Counsel appearing for the assessee submitted before us that the tax effect of the matter is Rs.1,35,00,000/- and therefore, the appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on (ITO vs. Raj Concrete) A.Y.– 2015-16 - 3 - showing inapplicability of the aforesaid CBDT Circular in any manner.

In the result, the appeal of the Revenue is dismissed.