DY. CIT,CENTRAL CIRCLE-2(1), NAGPUR vs. ZIM LABORATORIES PRIVATE LIMITED, NAGPUR

These two appeals by the Revenue and one CO by the assessee are directed against the separate orders dated 28-03-2018 passed by the ld. CIT(A)-3 Nagpur in relation to the assessment years 2011-12 & 2013-14.

At the outset, the ld. DR admitted that the tax effect in these appeals 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 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 each of the appeals under consideration is admitted to be less than the prescribed monetary limit of Rs.50.00 lakh, we are not inclined to entertain these appeals. These appeals of the Revenue are liable to be and are 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(s).

Since the appeal of the Revenue for the A.Y. 2011-12 is dismissed on account of low tax effect, the CO filed by the assessee, which is only in support of the ld. CIT(A)’s order, becomes infructuous.

In the result, the appeals of the Revenue and the CO of the assessee are dismissed. Order pronounced in the Open Court on 27th July, 2023.