Income Tax Appellate Tribunal - Ahmedabad
Ito-Ward-6(2),, Ahmedabad vs Smt. Chadrikaben Maheshbhai Patel,, ... on 1 November, 2018
आयकर अपील
य अ धकरण, अहमदाबाद यायपीठ ।
IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD
BENCH 'B'
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER
AND
SHRI AMARJIT SINGH, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA.No.683/AHD /2016
With
CO No.54/AHD/2016
नधा रण वष / Asstt. Year: 2006-2007
ITO, Ward-6(2) Smt.Chandrikaben Maheshbhai Patel
Ambawadi Vs 17, Amiraj Bunglow, Manikamal
Ahmedabad. Society
Nr.Surdhara Circle
Thaltej, Ahmedabad.
PAN : AFBPP 0339 P
अपीलाथ!/ (Appellant) "#यथ!/ (Respondent)
Revenue By : Shri Mudit Nagpal, Sr.DR
Assessee by : Shri Bhavesh Shah, AR
सन
ु वाई क तार ख/ Dateof Hearing : 01/11/2018
घोषणा क तार ख / Date of Pronouncement: 01/11/2018
आदे श/O R D E R
PER RAJPAL YADAV, JUDICIAL MEMBER:
Revenue is in appeal before the Tribunal against order of ld.CIT(A)-13 Ahmedabad dated 6.1.2016 passed for the Asstt.Year 2006-07. On receipt of notice on the Revenue's appeal, assessee has filed cross objection bearing No.54/Ahd/2016. Both are disposed of by this common order.
2. At the outset, the ld.counsel for the assessee has raised a preliminary objection as to the maintainability of Revenue's appeal before the Tribunal, in view of recent CBDT direction restricting the Revenue not to file appeal before the Tribunal where tax effect is below Rs.20 lakhs. Therefore, since disputed addition involved in the present appeal is of Rs.57,15,932/- tax effect ITA No.683/Ahd/2016 with CO 2 thereon would be less than Rs.20 lakhs, the appeal of the Revenue is liable to be dismissed in limine. To this submission of the ld.counsel for the assessee, no resistance came from the ld.DR, however, and left the issue to the Bench to be decided in accordance with law.
3. On due consideration of the record and submissions of both the parties, we find that appeal of the Revenue is presented on 18.3.2016. On 11.7.2018 the CBDT has issued a Circular No.3/2018 prohibiting its subordinate authorities from filing of appeal to the Tribunal against order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.20 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present case, the tax effect on the disputed deletion of addition does not exceed Rs.20 lakhs, which was also not disputed by the ld.DR. The "tax effect" as per CBDT Circular is tax 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, would be less than Rs.20 lakhs. Therefore, the present appeal of the Revenue is hit by the CBDT Circular and hence not maintainable. Further, ld.DR has not pointed out whether the case of the Revenue fall within the ambit of exceptions provided in the Circular or not. 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 appeal of the Revenue deserves to be dismissed. It is 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 ITA No.683/Ahd/2016 with CO 3 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 within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect.
4. So far as CO of the assessee is concerned, in view of dismissal of appeal of the Revenue, the ld.counsel for the assessee does not press the same for adjudication, hence, CO of the assessee stands dismissed.
5. In the result, the appeal of the Revenue is dismissed due to low tax effect, whereas the CO of the assessee is dismissed as not pressed.
Order pronounced in the Court on 1st November, 2018 at Ahmedabad.
Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 01/11/2018