INCOME TAX OFFICER WARD, MOGA vs. SHRIMATI NEELAM RANI, NIHAL SINGH WALA

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ITA 157/ASR/2021Status: DisposedITAT Amritsar20 December 2022AY 2017-184 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal involved a tax effect less than Rs. 50,00,000/-. Therefore, the appeal was dismissed as not maintainable.

What were the facts?

The Revenue filed an appeal against the CIT(A) order for AY 2017-18. The assessee argued that the tax effect of the appeal was below the threshold limit prescribed by CBDT Circular 17/2019 for filing appeals.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable given the low tax effect, as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE

Hearing: 12.12.2022Pronounced: 20.12.2022

The appeal has been filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-1, Ludhiana dated 30.12.2019 in respect of AY 2017-18.

ITO v. Neelam Rani 2. At the outset, the Ld. Counsel for the assesse submitted that the case is covered within the threshold limit prescribed for filing an appeal by the department before the Hon’ble Income Tax Appellate Tribunal vide CBDT Circular 17/2019 dated 08/08/2019. He has filed tax computation chart as under:

The Ld. Assessing Officer has computed the tax payable as under:

Particular Amount (Rs.) Tax payable on total income 73,85,849/- Surcharge 18,00,006/- Education Cess 2,75,576/- Total Tax Liability (I) 94,61,431/-

Further, attention is invited to the intimation u/s 143(1) vide which the returned income of the appellant was accepted, vide which CPC Bengaluru had computed the tax payable enclosed at pages 7-16, as under:

Particular Amount (Rs.) Tax at normal rates 37,85,837/- Surcharge 5,67,876/- Education Cess 1,30,611/- Total Tax Liability (II) 44,84,324/-

Resultantly, based on the above two tables, Your Honors will appreciate that the overall tax effect of the order of the Ld. Assessing Officer is only Rs. 49,77,107/- (I-II), which is less than the prescribed threshold of Rs. 50,00,000/- as prescribed.

Hence, it is prayed that since the tax effect in the said matter is below the prescribed threshold, the appeal of the department may kindly be dismissed.”

ITO v. Neelam Rani 3. The Ld. DR has not controverted the computation chart filed by the Ld AR and he has no objection to the request of the assesse that since the tax effect in the said matter is below the prescribed threshold, the appeal of the department may be dismissed.

4.

On low tax effect, in the case of “DCIT v. Keshav Power Ltd.”, (SLP/Civil No. 21497/2019) the Hon’ble Apex Court has dismissed the Revenue appeal vide order dated 16th August, 2019 considering the revised monetary limits 2.00 crore for filing appeal before it, as per the aforesaid circular.

5.

In view of above facts, we hold that the appeal of the department, being involving tax effect of less than Rs.50,00,000/- is hereby dismissed as not maintainable.

Order pronounced in the open court on 20.12.2022

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