Appeal Dismissed for Low Tax Effect Under CBDT Notification

The Tribunal dismissed the revenue's appeal and the assessee's Cross Objection for Assessment Year 2012-13 due to the low tax effect, below Rs. 50 Lakhs, as per CBDT notification. The appeal against the deletion of addition by the CIT(A) was not maintainable based on the tax effect threshold. The Cross Objection supporting the CIT(A)'s order was also dismissed accordingly.

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Issues involved:
Appeal by revenue against order of CIT(A) for Assessment Year 2012-13, Deletion of addition by CIT(A), Maintainability of appeal by revenue due to low tax effect, Maintainability of Cross Objection (C.O.) by assessee.

Analysis:

1. Deletion of Addition by CIT(A):
- The appeal was filed by the revenue against the order of the ld. CIT(A) for Assessment Year 2012-13. The assessee had declared an income of Rs. 2,38,10,300, which was assessed at Rs. 3,22,27,430 after an addition of Rs. 84,17,130. However, the CIT(A) deleted this addition. Both sides were heard, and it was noted that the tax effect in this case was below Rs. 50 Lakhs. As per CBDT notification, no appeal is required to be filed by the revenue before the Tribunal if the tax effect is below Rs. 50 Lakhs. Therefore, the appeal of the revenue was dismissed by the Tribunal due to the low tax effect. The Cross Objection filed by the assessee was in support of the CIT(A)'s order. Since the appeal by the revenue was dismissed, the C.O. was also not maintainable and was dismissed accordingly.

2. Maintainability of Appeal by Revenue:
- The Tribunal highlighted that CBDT instruction regarding the tax effect being below Rs. 50 Lakhs is applicable to pending appeals as well. Therefore, in this case, as the tax effect was below the specified threshold, the appeal filed by the revenue was considered not maintainable and was dismissed on this ground.

3. Maintainability of Cross Objection (C.O.) by Assessee:
- The Cross Objection filed by the assessee was found to be merely in support of the order of the CIT(A). Since the appeal by the revenue was dismissed due to low tax effect, the C.O. was also considered not maintainable and dismissed accordingly.

In conclusion, the Tribunal dismissed both the appeal filed by the revenue and the Cross Objection filed by the assessee due to the low tax effect, as per the CBDT notification. The decision was based on the settled position of law that the CBDT instruction applies to pending appeals as well. The order was pronounced in the open court on the mentioned date.

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