ITO, WARD-2(1), PATNA vs. M/S NAVYUG HOMES PVT LTD, PATNA

The ld. counsel for the assessee pointed out that the tax effect by virtue of relief given by the first appellate authority is less than Rs.50,00,000/-. He brought to our notice CBDT Instruction bearing No. 17 1

M/s. Navyug Homes Pvt. Ltd., Patna of 2019 issued on 8th August 2019, vide which CBDT has directed its subordinate authorities not to challenge the order of ld. CIT(Appeals) before Tribunal if tax effect by virtue of relief given by the ld. CIT(Appeals) is less than Rs.50,00,000/-. Such order could only be challenged if it comes within exceptions provided in the Instruction. According to the ld. counsel for the assessee, this case does not fall in any of the exceptions and, therefore, this appeal is not maintainable. He also pointed out that these Instructions are applicable even on pending appeals. On the other hand, ld. CIT(DR) is unable to controvert the facts.

On due consideration of the above facts and circumstances, we dismiss this appeal of the Revenue for want of tax effect. However, in case on re-verification of the facts at the end of the Assessing Officer, it comes out that tax effect is more or this case falls in any of the exceptions provided in this Instruction. Then Revenue will be at liberty to file Miscellaneous Application for revival of this appeal. Such application should be filed within the time limit provided in the Act.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on February 21, 2022.