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2018 (11) TMI 1691 - AT - Income TaxMaintainability of appeal - low tax effect - tax effect involved in the aforesaid appeals is less than ₹ 20 lacs - HELD THAT - In view of the CBDT Circular No. 03/2018 and in the light of the above referred to decision of SH. SURINDER KUMAR SINGAL 2017 (1) TMI 1658 - PUNJAB AND HARYANA HIGH relying upon DHANALEKSHMI BANK LTD. 2015 (8) TMI 474 - SC ORDER the captioned appeals of the Revenue are dismissed due to low tax effect.
Issues:
- Appeal filed by Revenue against orders of CIT(A) with tax effect less than ?20 lacs. Analysis: The judgment pertains to appeals filed by the Revenue against separate orders of the Commissioner of Income Tax (Appeals), Chandigarh, where the tax effect involved was less than ?20 lacs. The Ld. Counsel of the assessee pointed out that as per CBDT Circular No. 3/2018, appeals falling under this threshold should be dismissed. The Ld. DR representing the Revenue also acknowledged the applicability of the circular to these appeals, thereby indicating that the Revenue's appeals are liable to be dismissed. The CBDT Circular No. 3/2018, dated 11.07.2018, revised the monetary limit for filing appeals by the Department before the Tribunal to ?20 lacs. Additionally, it clarified that this circular is applicable retrospectively to pending appeals as well. The judgment cited the decision of the Hon'ble Punjab & Haryana High Court in a specific case, where an appeal was dismissed by the High Court due to low tax effect, following the precedent set by the Hon'ble Supreme Court in another case. In light of this circular and the mentioned decisions, the appeals of the Revenue in the present case were dismissed due to the low tax effect falling below the specified threshold. It is crucial to note that the dismissal of the appeals by the Revenue does not imply affirmation of the orders of the CIT(A) on their merits. The legal issues raised by the Revenue are left open to be adjudicated in a suitable case in the future. The judgment was pronounced in the Open Court on 01.11.2018, emphasizing the application of the CBDT Circular and the precedence set by the High Court and the Supreme Court in similar cases.
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