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2020 (9) TMI 1273 - AT - Income TaxMaintainability of appeal on low tax effect - Reopening of assessment u/s 147 - HELD THAT - Both the parties before us mutually agreed that this revenue appeal is to be dismissed as not maintainable in view of the recent Circular issued by the CBDT dated 08/08/2019 wherein the revenue has been directed to withdraw the appeal preferred by it before the Tribunal if the tax effect on the disputed issues is less than or equal to Rs.50,00,000/-. It is well settled that this Circular is binding on the revenue authorities. Respectfully following the said Circular, the appeals filed by the revenue are dismissed as not maintainable. In case, if the revenue is able to provide evidence that the case falls under any of the exceptions provided in the circular issued by the CBDT, then the revenue may prefer miscellaneous application for recalling of this order, if they so desire, in which circumstance this order shall be recalled by this Tribunal.
Issues: Jurisdiction of the Tribunal based on Circular issued by CBDT regarding tax effect on disputed issues.
In this judgment by the Appellate Tribunal ITAT Mumbai, the issue at hand was the maintainability of a revenue appeal for the assessment year 2009-10. The appeal arose from an order passed by the ld. Commissioner of Income Tax (Appeals)-3, Mumbai, against the order of assessment under section 143(3) read with section 147 of the Income Tax Act, 1961. The Tribunal noted that both parties agreed that the revenue appeal should be dismissed as not maintainable, in accordance with a Circular issued by the CBDT on 08/08/2019. This Circular directed the revenue to withdraw appeals before the Tribunal if the tax effect on disputed issues is less than or equal to Rs.50,00,000. The Tribunal emphasized that the Circular is binding on the revenue authorities. Consequently, the appeals filed by the revenue were dismissed as not maintainable, in line with the Circular. Furthermore, the Tribunal stated that if the revenue could provide evidence that the case fell under exceptions outlined in the CBDT Circular, they could file a miscellaneous application for the order's recall. The Tribunal made it clear that in such a scenario, the order would be recalled. Ultimately, the Tribunal pronounced that the appeal filed by the revenue was dismissed as not maintainable. The judgment was delivered in open court on 07/09/2020.
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