What did the Tribunal hold?

The Tribunal noted that the tax effect was less than Rs. 10 lacs, making the departmental appeal not maintainable as per CBDT instructions. The Departmental Representative stated they would not press the appeal.

The Department filed an appeal before the ITAT. The assessee contended that the tax effect in the appeal was below the monetary limit prescribed by a CBDT circular for filing appeals.

What were the issues?

Whether the departmental appeal is maintainable before the ITAT given the tax effect is below the prescribed monetary limit by the CBDT circular.

ITO vs M/S Pugmark Interweb (P) Ltd… | ITAT Chandigarh 2018

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

Before: MS.DIVA SINGH & MS. ANNAPURNA GUPTA

For Appellant: Shri Manjit Singh, Sr.DR

For Respondent: Shri Ajay Jain

Hearing: 25.06.2018Pronounced: 25.06.2018

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

BEFORE MS.DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.430/Chd/2018 (Assessment Year : 2014-15) The Income Tax Officer, Vs. M/s Pugmark Interweb (P)Ltd., Ward-4(3), SCO-343-345, Sector-34-A, Chandigarh. Chandigarh. PAN: AABCP0712 (Appellant) (Respondent)

Appellant by : Shri Manjit Singh, Sr.DR Respondent by : S/Shri Ajay Jain & Yogesh Monga, CA Date of hearing : 25.06.2018 Date of Pronouncement : 25.06.2018

ORDER PER ANNAPURNA GUPTA, A.M. : This appeal has been preferred by the assessee against

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

Chandigarh dated 25.1.2018 relating to assessment year

2014-15.

It is stated that in the present appeal the tax effect is

less than the prescribed limit provided by the recent CBDT

Circular.

According to Circular No.21/2015 dated 10.12.2015,

the CBDT in supercession of earlier instructions has

directed that department’s appeals before ITAT shall not be

filed in cases where the tax effect does not exceed the

monetary limit of Rs.10 lacs. The tax will not include any

interest thereon. It is further clarified that if in the case of

an assessee, disputed issues arise in more than one

assessment year, appeal can be filed in respect of such

assessment year or years in which the tax effect in respect

of disputed issues exceeds the monetary limit so specified.

This instruction will apply retrospectively to pending

appeals and appeals to be filed henceforth before the

Tribunal. The pending appeals below the specified tax limit

may be withdrawn/not pressed.

Admittedly, in the departmental appeal, the tax effect

is less than Rs.10 lacs, therefore, departmental appeal is

not maintainable. The learned CIT (Appeals) decided the

issue in departmental appeal on facts and the case of the

revenue would not fall in the exceptions provided in the

above circular.

In view of the above, learned D.R. stated that since

departmental appeal is filed against the CBDT instructions,

therefore, he would not be pressing departmental appeal.

Therefore, the above departmental appeal is dismissed being

not pressed.

In the result, the Departmental appeal is dismissed. Order pronounced in the Open Court.

Sd/- Sd/- (DIVA SINGH) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 25th June, 2018 *Rati* Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR

Assistant Registrar, ITAT, Chandigarh

ITO, W-4(3), CHANDIGARH vs. M/S PUGMARK INTERWEB (P) LTD., CHANDIGARH

What did the Tribunal hold?

What were the facts?

What were the issues?

Recent GST High Court judgments