2017 (5) TMI 1683 - AT - Income Tax

Monetary limit - Low tax effect - maintainability of appeal - HELD THAT - The tax effect involved in this appeal is less than ₹ 10 lakhs. In view of the latest circular issued by the Central Board of Direct Taxes (CBDT), instructed its officers not to file an appeal before this Tribunal, wherein the tax effect is less than ₹ 10 lakhs. This Tribunal is of the considered opinion that the appeal filed by the Revenue is not maintainable. Accordingly the appeal of the Revenue stands dismissed.

Summary

Issues:
- Appeal against the order of the Commissioner of Income Tax (Appeals)-1, Chennai dated 12.08.2016 pertaining to the assessment year 2000-01.
- Tax effect involved in the appeal is less than ?10 lakhs.
- Circular issued by the Central Board of Direct Taxes (CBDT) instructing officers not to file an appeal before the Tribunal when tax effect is less than ?10 lakhs.
- Maintainability of the appeal filed by the Revenue.

Analysis:

1. The appeal before the Appellate Tribunal ITAT Chennai was directed against the order of the Commissioner of Income Tax (Appeals)-1, Chennai dated 12.08.2016 concerning the assessment year 2000-01.

2. During the hearing, both the representatives, Shri Ashit Agarwal for the assessee and Dr. B. Nischal for the Revenue, acknowledged that the tax effect involved in the appeal was less than ?10 lakhs. They referred to a recent circular by the CBDT instructing officers not to file appeals before the Tribunal in cases where the tax effect is below ?10 lakhs.

3. Considering the CBDT circular and the tax effect criterion, the Tribunal concluded that the appeal filed by the Revenue was not maintainable. As a result, the Tribunal dismissed the appeal of the Revenue.

4. The Tribunal pronounced the order on 31st May 2017 in Chennai, thereby affirming the dismissal of the Revenue's appeal. The decision was based on the specific tax effect threshold set by the CBDT, which guided the Tribunal's determination of the appeal's maintainability.

This detailed analysis highlights the key issues involved in the judgment, focusing on the tax effect criterion and the CBDT circular that influenced the Tribunal's decision to dismiss the Revenue's appeal.