2018 (8) TMI 2081 - AT - Income Tax

Maintainability of appeal - Low tax effect - HELD THAT - Departmental Representative for the Revenue was required to state his position; he has not referred to any material which would show that the captioned appeal is protected by any of the exceptions provided in para 10 of the Circular (supra). Without going into the merit of the issues raised in the captioned appeal, this appeal is deemed to be withdrawn/not pressed as its filing is in contravention of the CBDT Circular dated 11.07.2018 (supra). Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for re-institution of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescribed in para 10 of the Circular (supra). In conclusion, by applying the CBDT Circular dated 11.07.2018 (supra), the captioned appeal of the Revenue is dismissed as withdrawn/not pressed.

Summary

Issues:
Appeal against order of CIT(A)-4, Pune for assessment year 2009-10 under section 143(3) of the Income-tax Act, 1961. Compliance with revised monetary limits for filing appeals by the Department before the Tribunal as per CBDT Circular No.3/2018 dated 11.07.2018.

Issue 1: Appeal against CIT(A) Order
The judgment pertains to an appeal filed by the Revenue against the order of CIT(A)-4, Pune, dated 02.01.2017, relating to the assessment year 2009-10 under section 143(3) of the Income-tax Act, 1961. The appeal was brought before the Appellate Tribunal ITAT Pune for adjudication.

Issue 2: Compliance with CBDT Circular
The CBDT, through Circular No.3/2018 dated 11.07.2018, revised the monetary limits for filing appeals by the Department before the Tribunal with retrospective effect. The tax effect in dispute in the present appeal was found to be below the monetary limit of ? 20.00 lakhs specified in the said CBDT Circular. The Departmental Representative for the Revenue was called upon to present any material demonstrating that the appeal fell within the exceptions outlined in para 10 of the Circular.

Analysis:
The Tribunal noted that despite the revised monetary limits specified in the CBDT Circular, the Departmental Representative did not provide any material to establish that the appeal qualified for any exceptions as laid down in para 10 of the Circular. Consequently, without delving into the merits of the issues raised in the appeal, the Tribunal deemed the appeal as withdrawn/not pressed due to its non-compliance with the CBDT Circular dated 11.07.2018. The Tribunal clarified that the Revenue could approach the Tribunal for re-institution of the appeal if they could furnish material demonstrating that the appeal fell within the exceptions specified in para 10 of the Circular.

Conclusion:
In adherence to the CBDT Circular dated 11.07.2018, the Tribunal dismissed the Revenue's appeal as withdrawn/not pressed, as it failed to meet the revised monetary limits for filing appeals before the Tribunal. The judgment was pronounced on the 14th day of August, 2018, with the appeal of the Revenue being dismissed accordingly.