Income Tax Appellate Tribunal - Ahmedabad
The Dcit, Circle-1(1)(2),, Ahmedabad vs Claris Life Sciences Ltd.,, Ahmedabad on 26 November, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "D" BENCH
Before: Shri Amarjit Singh, Accountant Member
And Ms. Madhumita Roy, Judicial Member
ITA Nos. 2052/Ahd/2012 & 3424/Ahd/2014
Assessment Year 2008-09 & 2009-10
The Dy. CIT(OSD), M/s. Claris Life
Range-1, Sciences Ltd.
Ahmedabad Vs Corporate Tower,
(Appellant) Nr. Parimal Crossing,
Ellisbridge,
Ahmedabad-380006
PAN:AAACC6366Q
(Respondent)
Revenue by: Shri Rajdeep Singh, Sr. D.R.
Assessee by: Ms. Urvashi Shodhan, A.R.
Date of hearing : 20-11-2019
Date of pronouncement : 26-11-2019
आदेश /ORDER
PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-
These two appeals filed by revenue for A.Y. 2008-09 & 2009-10, arise from order of the CIT(A)-6, Ahmedabad dated 19-07-2012 & 30-10-2014, in proceedings under section 143(3) r.w.s. 144C of the Income Tax Act, 1961; in short "the Act".
3. At the outset, after going through the grounds of appeals and the impugned orders of the Revenue authorities below, a query was raised by the Bench as to I.T.A Nos. 2052/Ahd/2012 & 3424/Ahd/2014 A.Y. 2008-09 & 2009-10 Page No 2 Dy. CIT vs. Claris Life Sciences Ltd.
applicability and maintainability of the appeals filed by the Revenue in view of recent CBDT Circular No. 17/2019 dated 08-08-2019 restricting the filling of the appeal by the Revenue where the tax effect is below Rs.50 lakhs, the ld. DR did not dispute the same and submitted that the issue is left to the Tribunal to be decided in accordance with law.
4. We find that both the appeals of the Revenue are presented on 11.9.2012 & 19-12-2014. On 8.8.2019 the CBDT has issued Instructions bearing No. 17 of 2019 under file No. F. No. F. No. 279/Misc. 142/2007-ITJ(Pt.) prohibiting its subordinate authorities from filing of the appeals to the Tribunal against the order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.50 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present case, "tax effect" on the total income assessed minus the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal is filed, is less than Rs.50 lakhs. Further, the case of the Revenue does not fall within the ambit of exceptions provided in the Circular. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeals of the Revenue deserve to be dismissed. They are accordingly dismissed.
However, it is observed that in case on re-verification at the end of the AO it comes to the notice that the tax effect is more or Revenue's case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed I.T.A Nos. 2052/Ahd/2012 & 3424/Ahd/2014 A.Y. 2008-09 & 2009-10 Page No 3 Dy. CIT vs. Claris Life Sciences Ltd.
within the time period prescribed in the Act. In view of the above, both the appeals of the Revenue are dismissed due to low tax effect.
5. In the result, both the appeals of the Revenue are dismissed.
Order pronounced in the open court on 26-11-2019 Sd/- Sd/-
(MADHUMITA ROY) (AMARJIT SINGH)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad : Dated 26/11/2019
आदेश क त ल प अ े षत / Copy of Order Forwarded to:-
1. Assessee
2. Revenue
3. Concerned CIT
4. CIT (A)
5. DR, ITAT, Ahmedabad
6. Guard file.
By order/आदेश से,
उप/सहायक पंजीकार
आयकर अपील य अ धकरण,
अहमदाबाद