2018 (8) TMI 1883 - AT - Income Tax

Maintainability of appeal - low tax effect - monetary limit - HELD THAT - Taking a note of CBDT Circular No. 03/2018, dated 11.07.2018 and considering the fact that the tax effect in the instant appeal is less than ₹ 20 lakh, the present appeal deserves to be dismissed as not pressed/not maintainable

Summary

Issues:
- Appeal filed by revenue against order of CIT(A)-4, Hyderabad for 2013-14.
- Applicability of Circular No. 3/2018 dated 11.07.2018 issued by CBDT regarding monetary limit for filing appeals.
- Dismissal of appeal and consequential order on the basis of the tax effect being less than ?20 lakh.

Analysis:
1. The appeal before the Appellate Tribunal ITAT Hyderabad was filed by the revenue against the order of CIT(A)-4, Hyderabad for the assessment year 2013-14. The appeal was also accompanied by a Cross Objection (CO) filed by the assessee against the same order.

2. The Tribunal noted that as per Circular No. 3/2018 dated 11.07.2018 issued by the CBDT, appeals should not be filed where the tax effect does not exceed ?20 lakh. In the present case, the tax effect was found to be less than the specified limit. Therefore, the Tribunal concluded that the appeal deserved to be dismissed as not pressed or maintainable. However, the Tribunal clarified that the issues raised in the appeal could be examined in future proceedings if necessary. Additionally, the Revenue was given the option to move an application for recalling the order in case the appeal fell under any exceptions mentioned in the circular.

3. Consequently, in accordance with the CBDT Circular No. 3/2018, the Tribunal dismissed the appeal filed by the revenue. Since the revenue appeal was dismissed, the CO filed by the assessee was deemed infructuous and was also dismissed on the same grounds.

This judgment highlights the importance of complying with the monetary limits set by the CBDT for filing appeals and emphasizes the need to consider such limits before pursuing litigation. The decision showcases the Tribunal's adherence to the circular's directives and its commitment to reducing tax litigation where the tax effect falls below the specified threshold.