2019 (8) TMI 1877 - AT - Income Tax

Revenue's Appeals Dismissed by ITAT Hyderabad Due to Low Tax Effect Below Rs.50 Lakh Threshold per CBDT Circulars.

Coastal Infrastructure Private Limited, Viz Infra Consultant Private Limited, Pragati Green Meadows and Resorts P Ltd, Nettlinx Limited, Lakshmi Nilaya Constructions, ADP Private Limited,  Margadarsi Marketing Private Limited, Healthy Heart Foods, Uma Engineering Works, B Ashok Kumar (Ind), Kurnool, B Ankith Kumar, Mishra Dhatu Nigam Limited, P. Venkata Rami Reddy And Other Versus DCIT, ACIT, ITO And Other

Coastal Infrastructure Private Limited, Viz Infra Consultant Private Limited, Pragati Green Meadows and Resorts P Ltd, Nettlinx Limited, Lakshmi Nilaya ... Issues:Appeals of the Revenue against CIT (A) orders dismissed due to low tax effect.Analysis:The Appellate Tribunal, ITAT Hyderabad, comprising Smt. P. Madhavi Devi and Shri. A. Mohan Alankamony, heard multiple appeals by the Revenue for various assessment years against the orders of the respective CIT (A). During the hearing, it was noted that as per CBDT Circulars No.03/2018 and Circular No.17 of 2019, the tax limit for filing appeals by the Revenue before the Tribunal was set at Rs.50.00 lakhs. Since the tax effect in all the appeals was below this threshold, the Tribunal decided to dismiss the appeals on the grounds of low tax effect. The Revenue was granted the liberty to seek a recall of the order if any of the appeals fell within the exceptions specified in the Circulars. Consequently, all the appeals by the Revenue were dismissed as withdrawn, and the cross objections were dismissed as infructuous. The order was pronounced in the Open Court on 26 August 2019.