2019 (8) TMI 1678 - AT - Income Tax

Revenue appeals dismissed by tribunal due to low tax effect per CBDT Circulars. Liberty for recall in exceptions.

The appeals filed by the Revenue against the orders of the CIT (A) for various assessment years were dismissed by the appellate tribunal due to the low ... Maintainability of appeal - low tax effect - HELD THAT:- As at the time of hearing it has been brought to our notice that as per the CBDT Circulars No.03/2018 dated 11.07.2018 and Circular No.17 of 2019 dated 9th August, 2019, the tax limit for filing of appeal by the Revenue before the Tribunal has been fixed at ₹ 50.00 lakhs. Since the tax effect in all these appeals is less than ₹ 50.00 lakh, we are dismissing the same on account of low tax effect with the liberty to the Revenue to seek recall of the order, if any of these appeals falls within the exceptions mentioned in the Circulars cited above. In the result, all these appeals filed by the Revenue are dismissed as withdrawn and the cross objections are dismissed as infructuous. Issues:Dismissal of appeals by the Revenue due to low tax effect.Analysis:The appellate tribunal, consisting of Smt. P. Madhavi Devi, Judicial Member, and Shri. S. Rifaur Rahman, Accountant Member, heard multiple appeals filed by the Revenue against the orders of the respective CIT (A) for various assessment years. During the hearing, it was noted that the CBDT Circulars No.03/2018 and Circular No.17 of 2019 had set a tax limit of Rs. 50.00 lakhs for filing appeals by the Revenue before the Tribunal. As the tax effect in all the appeals was below this threshold, the tribunal decided to dismiss the appeals due to the low tax effect. The Revenue was granted the liberty to seek a recall of the order if any appeal fell within the exceptions outlined in the Circulars. Consequently, all appeals filed by the Revenue were dismissed as withdrawn, and the cross objections were deemed infructuous. The order was pronounced in the Open Court on 23 August 2019.