What did the Tribunal hold?

The Tribunal found that the tax effect involved in the appeal was below the enhanced monetary limit prescribed by the CBDT circulars. Therefore, the appeal was dismissed without going into the merits of the issues raised.

The Revenue filed an appeal before the ITAT against an order of the CIT(Appeals). The assessee argued that the appeal should be dismissed due to low tax effect, citing CBDT circulars that revised monetary limits for appeals.

What were the issues?

Whether the Revenue's appeal should be dismissed on the grounds of low tax effect as per CBDT circulars.

DCIT vs Clr Services Pvt. Ltd. | ITAT Pune 2021

Income Tax Appellate Tribunal, “A” BENCH, PUNE

Before: SHRI INTURI RAMA RAO & SHRI PARTHA SARATHI CHAUDHURY

For Appellant: Shri Kishore Phadke

For Respondent: Shri Vitthal Bhosale

Hearing: 07.07.2021Pronounced: 07.07.2021

आदेश / ORDER This appeal preferred by the Revenue emanates from the order of the Ld. CIT(Appeals)-1, Pune dated 29.02.2016 for the assessment year 2012-13 as per the grounds of appeal on record.

2. At the very outset, the Ld. Counsel for the assessee submitted that the appeal of Revenue is liable to be dismissed on account of low tax effect in terms of recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)], dated 08-08-2019 read with Circular No.3 of 2018 dated 11.07.2018 revising the upward monetary limits for filing of appeals in Income Tax Cases before various Appellate Forums. The earlier CBDT Circular No.03/2019 dated 11.07.2018 fixed monetary limit for filing of appeals before the Tribunal at Rs.20 Lakhs. Such limit has been enhanced in the recent CBDT Circular dated 08.08.2019 from Rs.20 lakhs to Rs.50 Lakhs. Thus, the tax effect on the addition is less than Rs.50 Lakhs.

3. The Ld. DR for the Revenue submitted that he is not sure about the tax effect involved in this appeal. However, he submitted that Revenue is ready to withdraw the appeal under the circumstances if a conditional order is passed to that effect.

Both sides heard. We find that the tax effect involved in this appeal is less than the monetary limit prescribed by the recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)] dated 08-08-2019 read with Circular No.3 of 2018 dated 11.07.2018 for filing of appeals before the Tribunal by the Department. The CBDT vide circular dated 08.08.2019 (supra.) has amended Para 3 of Circular No.3 of 2018 dated 11.07.2018 thereby enhancing monetary limit of tax effect from Rs.20 Lakhs to Rs.50 Lakhs for filing appeals by the Department before the Tribunal. Thus, without going into merit of the issues raised in the appeal, in view of the CBDT Circular (supra), we dismiss the appeal filed by the Revenue.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20-08-2018.

In the result, appeal of the Revenue is dismissed.

Order pronounced on 07th day of July, 2021.

Sd/- Sd/- INTURI RAMA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ददनांक / Dated : 07th July, 2021 SB आदेश की प्रधतधलधप अग्रेधषत / Copy of the Order forwarded to : अपीलाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2.

The CIT(Appeals)-1, Pune.

DEPUTY COMMISSIONER OF INCOME-TAX vs. CLR SERVICES PVT. LTD., PUNE

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