2021 (4) TMI 1333 - AT - Income Tax

Maintainability of appeal - low tax effect - HELD THAT - As noted that the tax effect in this appeal is of Rs.35,25,971/- which is less than the monetary limit of the Rs.50 lacs as fixed by CBDT Circular No.17/2019 dated 08.08.2019 for filing appeal before the Tribunal. Hence, the appeal filed by the Revenue is dismissed. However, the Revenue is given liberty to get the appeal revive if at later stage it is discovered that grounds raised by the Revenue is covered by any exception clause of circular of CBDT dated 20.08.2018. Appeal of the Revenue is dismissed.

Summary

Issues: Jurisdiction of ITAT Surat, Tax Effect below threshold, Dismissal of Revenue's appeal

Jurisdiction of ITAT Surat:
The appeal before the ITAT Surat was directed against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2010-11. The ITAT Surat considered the contentions of both parties and reviewed the orders of the Assessing Officer and the CIT(A). The tax effect involved in the appeal was Rs.35,25,971, which fell below the monetary limit of Rs.50 lakhs set by the CBDT Circular No.17/2019. Consequently, the ITAT Surat dismissed the appeal filed by the Revenue. However, the Revenue was granted liberty to revive the appeal if it was later discovered that the grounds raised were covered by any exception clause of the CBDT circular dated 20.08.2018.

Tax Effect below threshold:
During the hearing, the Authorized Representative of the assessee provided the working of the tax effect, amounting to Rs.35,25,971. The Authorized Representative highlighted that this tax effect was below the threshold of Rs.50 lakhs as per the CBDT Circular No.17/2019. As a result, the appeal was considered liable for dismissal based on the circular's provisions. The Departmental Representative for the Revenue requested the liberty to revive the appeal if it was found that the grounds raised were covered by any exception clause of the circular dated 20.08.2018. The ITAT Surat acknowledged the submissions and ultimately dismissed the Revenue's appeal due to the tax effect falling below the specified threshold.

Dismissal of Revenue's appeal:
The ITAT Surat, comprising Hon'ble Judicial Member Shri Pawan Singh and Hon'ble Accountant Member Dr. Shri Arjun Lal Saini, pronounced the order on 15th April 2021. The appeal by the Revenue against the CIT(A)'s order for the assessment year 2010-11 was dismissed as the tax effect involved was below the prescribed limit. The decision was based on the CBDT Circular No.17/2019, which set the threshold for filing appeals before the Tribunal. Despite the dismissal, the Revenue was granted the opportunity to revive the appeal if the grounds raised were found to be covered by any exception clause of the relevant circular.