Income Tax Appellate Tribunal - Rajkot
The Assistant Commr. Of Income Tax, ... vs M/S Kishor Projects Pvt. Ltd.,, ... on 1 November, 2018
आयकर अपील
य अ धकरण, अहमदाबाद यायपीठ ।
IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT
[Conducted through "E" Court at Ahmedabad]
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER
AND
SHRI WASEEM AHMED, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA.No.488/RJT/2015
नधा रण वष / Asstt. Year: 2011-2012
ACIT, Cir.2(1) M/s.Kishor Projects P.Ltd.
Rajkot. Vs Bhushan Bldg., 1st Floor
Race Course Ring Road
Rajkot.
PAN : AACCK 3721 F
अपीलाथ!/ (Appellant) "#यथ!/ (Respondent)
Revenue By : Shri Praveen Verma, Sr.DR
Assessee by : None
सन
ु वाई क तार ख/ Dateof Hearing : 24/10/2018
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)-I Rajkot dated 16.7.2015 passed for the Asstt.Year 2011-12.
2. None appeared on behalf of the assessee, though notice of hearing was duly served upon the respondent-assessee. However, assessee filed an application for adjournment, which is dismissed. Therefore, we proceed to dispose of the appeal ex parte qua assessee-respondent, after hearing the ld.DR and considering the material available on record.
3. As set out in the grounds of appeal, the Revenue has challenged deletion of various additions by the ld.CIT(A). While going through the grounds of appeal, it is noticed that total tax effect on the aggregate of all ITA No.488/RJT/2015 2 additions does not exceed Rs.20 lakhs, therefore, Revenue's appeal is in contravention of the recent CBDT circular restricting the Revenue not to file appeal before the Tribunal where tax effect is below Rs.20 lakhs. When a query was put to the ld.DR in this behalf, he did not contest the same and left the matter to be decided in accordance with law.
4. We find that the appeal of the Revenue is presented on 12.10.2015. On 11.7.2018, 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 additions does not exceed Rs.20 lakhs. 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 case falls within the ambit of exceptions provided in the Circular, then ITA No.488/RJT/2015 3 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.
5. In the result, the appeal of the Revenue is dismissed.
Order pronounced in the Court on 1st November, 2018 at Ahmedabad.
Sd/- Sd/- (WASEEM AHMED) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER