What did the Tribunal hold?

The Tribunal noted that the CBDT had enhanced the monetary limit for filing appeals by the Revenue to Rs. 50.00 lakh. Since the tax effect was below this limit, the Tribunal was not inclined to entertain the appeal.

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2015-16. The Revenue admitted that the tax effect in the appeal was less than Rs. 50.00 lakh.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the tax effect is below the prescribed monetary limit set by the CBDT.

ITO vs M/S Yashoda Builders and… | ITAT Nagpur 2023

Income Tax Appellate Tribunal, NAGPUR BENCH

Before: SHRI R.S.SYAL & SHRI S.S.VISWANETHRA RAVI

For Appellant: Shri K.P. Dewani

For Respondent: Smt. Rashmi Mathur

Hearing: 28.07.2023Pronounced: 31.07.2023

आदेश / ORDER

PER R.S.SYAL, VP:

This appeal by the Revenue is directed against the order dated 28-09-2018 passed by the ld. CIT(A)-1 Nagpur in relation to the assessment year 2015-16.

At the outset, the ld. DR admitted that the tax effect in this appeal was less than Rs.50.00 lakh. The CBDT has issued circular No.17/2019 dated 08-08-2019 revising upward the monetary limits for filing of appeals by the Department in Income-tax Cases before various appellate forums. The earlier circular No.03/2018 dated 11-07-2018 fixed monetary limit for filing of appeals by the Revenue

M/s.Yashoda Builders and Developers before the Tribunal at Rs.20.00 lakh. Such limit has now been enhanced in the recent Circular dated 08-08-2019 to Rs.50.00 lakh.

Since tax effect in the appeal under consideration is admitted to be less than the prescribed monetary limit of Rs.50.00 lakh, we are not inclined to entertain this appeal. This appeal of the Revenue is liable to be and is hereby not allowed to be prosecuted. However, it is clarified that if, later on, it is found that the tax effect is more than the monetary limit of Rs.50.00 lakh, the Department will be at liberty to move application for restoration of the appeal.

In the result, the appeal is dismissed. Order pronounced in the Open Court on 31st July, 2023.

INCOME TAX OFFICER, WARD -1(3), NAGPUR vs. M/S YASHODA BUILDERS AND DEVELOPERS, NAGPUR

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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