THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2 (1), PANAJI vs. M/S V. M. SALGAOCAR & BROTHERS (P) LTD., VASCO

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ITA 85/PAN/2019Status: DisposedITAT Panaji22 August 2023AY 2011-12Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI PARTHA SARATHI CHAUDHURY (Judicial Member)3 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeals filed by the Revenue were not maintainable due to low tax effect as per the relevant CBDT circulars. However, the Revenue was granted liberty to apply for revival if exceptions applied in the future.

What were the facts?

The Revenue filed appeals before the ITAT against the orders of the CIT(A). The assessee contended that the tax effect involved in these appeals was below the threshold specified by CBDT circulars, making them not maintainable.

What were the issues?

The primary issue was the maintainability of the Revenue's appeals before the ITAT due to the low tax effect involved, as per CBDT circulars.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PANAJI BENCH :: PANAJI

Before: SHRI INTURI RAMA RAO & SHRI PARTHA SARATHI CHAUDHURY

For Appellant: Smt. Urvi Mehta, AR

For Respondent: Shri Badrinath Yamaji

Hearing: 18/08/2023Pronounced: 22/08/2023

ACIT, Circle-2(1), vs M/s. V.M. Salgaocar and Panaji, Goa Brother Pvt. Ltd., Post Box No.14, Salgaocar House, F.L. Gomes Road, Vasco Da Gama, Goa. PAN: AAACV 5950 B Appellant Respondent Assessee by : Smt. Urvi Mehta, AR Revenue by : Shri Badrinath Yamaji Chavan, DR Date of hearing : 18/08/2023 Date of pronouncement : 22/08/2023 O R D E R Per Bench: to 89, 91, 93/PAN/2019 and ITA Nos.90, 92 & 94/PAN/2019 preferred by the Revenue emanates from the common order, each, passed by the Commissioner of Income Tax [Appeal]-1, Panaji, dated 31/12/2018 for A.Ys. 2009-10 to 2017-18 and 2015-16, 2016-17 & 2017-18 respectively, as per the grounds of appeals on record.

-94/PAN/2019 M/s. V.M. Salgaocar & Brother Pvt. Ltd. 2. At the very outset, ld.AR of the assessee has submitted that tax effect involved in the Revenue’s appeals is below Rs.50.00 lakhs and per the CBDT Circular No.17/2019 dated 08/08/2019 read with CBDT Circular No.3/2018 dated 11/07/2018, the appeals filed by the Revenue are not maintainable.

Ld.DR admitted the fact that all the appeals of the Revenue are not maintainable due to low tax effect.

Having heard the parties and considering the materials on record, we find that the appeals filed by the Revenue are not maintainable due to low tax effect as per CBDT Circular No.17/2019, dated 08/08/2019 read with CBDT Circular No.3/2018, dated 11/07/2018. However, we further hold that if in the near future, it is found that these cases of the Revenue fall within one of the exceptions mentioned in the said circular, then Revenue shall be at liberty to apply for revival of these appeals. With these observations, the appeals of the Revenue are dismissed on low tax effect.

In the result, Revenue’s appeals stand dismissed. Order pronounced in open Court on 22nd August, 2023.

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