What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was not maintainable as the tax effect was below the prescribed limit of Rs. 50 lakhs as per CBDT Circular No. 17/2019. Consequently, the cross objection filed by the assessee was also dismissed as infructuous.

The Revenue filed an appeal before the ITAT against the order of the CIT(A) for the assessment year 2016-17. The assessee also filed a cross objection. The tax demand in the Revenue's appeal was below the threshold limit stipulated by CBDT.

What were the issues?

Whether an appeal filed by the Revenue before the ITAT is maintainable when the tax effect is below the threshold limit prescribed by CBDT circulars.

ITO vs M/S. Nilgiri Engineering… | ITAT Cuttack 2022

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

Before: ARUN KHODPIA & ARUN KHODPIA & ARUN KHODPIA

For Appellant: Shri K.K.Bal , AR

For Respondent: Shri S.C.Mohanty, Addl

Hearing: 9/6Pronounced: 9/6

Heard together (2 matters)

C.O.No.02/CTK/2021

ITA No.178/CTK/2020

Read from the judgment's own cause title. This page is filed under one of them.

Per Bench

This is an appeal filed by the revenue against the or against the order of the CIT(A) Cuttack dated 16.3.2020 Cuttack dated 16.3.2020 for the assessment year 2016 2016-17. The assessee has also filed cross objection in support of the order of the ld CIT(A). has also filed cross objection in support of the order of the ld CIT(A). has also filed cross objection in support of the order of the ld CIT(A).

P a g e 1 | 3 Assessment Year : 2016-17

At the outset, ld A.R. of the assessee submitted that in this appeal, the tax demand is Rs.41,45,154/-, which is below than Rs.50 lakhs and in view of CBDT Circular No.17/2019 dated 8.8.2019 , the appeal filed by the Revenue before the ITAT is not maintainable and to be dismissed as infructous.

In reply, ld Sr DR supported the order of the Assessing Officer.

We have considered the rival submissions. We refer to the CBDT Circular No.17/2009 dated 8.8.2019, wherein, minimum threshold limit of tax effect for filing of appeals by the Revenue in ITAT has been enhanced to Rs.50 lakhs by revising earlier CBDT Circular No.03 of 2018 dated 11.7.2018 and the Revenue is required to withdraw/not press those appeals filed by the Revenue, in which tax effect is below Rs.50,00,000/-. Consequently, this appeal filed by the revenue is held to be not maintainable and is treated as withdrawn/not pressed. We clarify that the Revenue will be at liberty to approach the Tribunal u/s.254(2) of the Act, seeking recall of this order and, for restoration of appeal, if it is found that appeal of revenue is not covered by the aforesaid CBDT Circular.

In regard to cross objection, ld A.R. submitted that the cross objection is in support of the order of the ld CIT(A). As we have dismissed the appeal of the revenue on the ground of tax effect, therefore, the cross objection is dismissed as infructuous.

P a g e 2 | 3 Assessment Year : 2016-17

In the result, appeal of the revenue and cross objection of the assessee are dismissed.

Order dictated and pronounced in the open court on 9 /6/2022. (Arun Khodpia) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 9 /06/2022 B.K.Parida, SPS (OS) Copy of the Order forwarded to :

The Appellant : ITO, Ward, -1, Balasore

The Respondent/Assessee”. M/s. Nilgiri Engg. Co-operative Society, Main Road, Nilagiri, Balasore

The CIT(A)-, Cuttack

Pr.CIT-, Cuttack

DR, ITAT, Cuttack

Guard file. ////

By order

Sr.Pvt.secretary, ITAT, Cuttack

P a g e 3 | 3

INCOME TAX OFFICER, WARD-1, BALASORE vs. M/S. NILGIRI ENGINEERING CO-OPERATIVE SOCIETY, BALASORE

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