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Income Tax Appellate Tribunal - Hyderabad

G.V. Madanmohan Reddy, Kadapa, Kadapa vs Department Of Income Tax on 18 December, 2015

       IN THE INCOME TAX APPELLATE TRIBUNAL
        HYDERABAD BENCHES "A" : HYDERABAD

 BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER
                     AND
  SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER

                    ITA.No.829/Hyd/2015
                  Assessment Year 2007-2008

ACIT, Circle-1,                Mr. G.V. Madanmohan Reddy,
Kadapa.                   vs., Prop.    Swetha     Transport,
                               Yerraguntla, Kadapa Dist.
                               PAN AGFPG3302G
(Appellant)                    (Respondent)

                  For Revenue : Mr. M. Sitharam
                  For Assessee : Mr. K.A. Saiprasad

              Date of Hearing : 18.12.2015
      Date of Pronouncement : 18.12.2015

                            ORDER

PER SMT. P. MADHAVI DEVI, J.M.

This is Revenue's appeal for the A.Y. 2007-08. In this appeal, the Revenue is aggrieved by the Order of the Ld. CIT(A) in allowing the deduction claimed by the assessee under section 40(a)(ia).

2. At the time of hearing, the Ld. Counsel for the assessee, Mr. K.A. Saiprasad, submitted that the tax effect in this appeal is less than Rs. 10 lakhs and therefore, Revenue's appeal is liable to be dismissed in view of CBDT Circular No.21/2015 dated 10th December, 2015. The Ld. Counsel for the assessee also filed a chart 2 ITA.No.827/Hyd/2015 Mr. G.V. Madanmohan Reddy, Yerraguntla, Kadapa Dist., showing the taxable income of the assessee which is reproduced hereunder :

ITA.No. A.Y. Issue/ Quantum Tax including SC + Next Ground No. in dispute Edu.Cess date of hearing 829/H/15 2007- u/s.40(a)(ia) 26,71,748 8,64,277 11.01.06 'A' 08 disallowance.
               Ground Nos.                      (2671748x1384012
               2 to 5                                    4288408

3. The L.d. D.R. has not objected to the above chart and as the tax effect in this appeal is below Rs.10 lakhs, he has not pressed the appeal.
4. On perusal of the CBDT Circular No.21/2015 dated 10th December, 2015, we find that the CBDT has fixed the monetary limit for filing of appeals before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court respectively. The monetary limit fixed for filing of appeal before the Tribunal is Rs.10 lakhs and it is also clarified that the tax effect means the difference between the tax on the total income assessed and the tax that would have been chargeable on such total income being reduced by the amount of income in respect of the issues against which, appeal is intended to be filed and also that the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. Para-10 of the instruction also clarifies that the instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in the High Courts/ Tribunal and has directed the Department to either withdraw or not press the 3 ITA.No.827/Hyd/2015 Mr. G.V. Madanmohan Reddy, Yerraguntla, Kadapa Dist., appeals below the specified tax limits. Duly taking note of the CBDT Circular No.21/2015 dated 10th December, 2015, we dismiss the appeal of the Revenue with liberty to the Revenue to seek recall of this order if this appeals falls within any of the exceptions provided in the Circular.
4. In the result, appeal of the Revenue is dismissed.

Pronounced in the open Court on 18.12.2015.

 Sd/-                               Sd/-
(S. RIFAUR RAHMAN)                 (SMT. P. MADHAVI DEVI)
ACOUNTANT MEMBER                      JUDICIAL MEMBER

Hyderabad, Dated 18th December, 2015 VBP/-

Copy to

1. ACIT, Circle-1, Kadapa Income Tax Office, Near RTC Bus Stand, Simhapuri Colony, Kadapa.

2. Mr. G.V. Madanmohan Reddy, Prop. Swetha Transport, Kadapa Road, Yerraguntla, Kadapa Dist., (A.P.)

3. CIT(A)-(i/c), Kurnool.

4. CIT, Kurnool.

5. D.R. I.T.A.T. "A" Bench, Hyderabad.

6. Guard File