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2018 (7) TMI 2314 - AT - Income TaxMonetary limit for preferring appeals before the ITAT - Disallowance being dividend income as claimed as exempt - HELD THAT - Admittedly, the tax is less than the prescribed limit for preferring appeals before the ITAT by the Income Tax department in view of Circular No. 3/2018 dated 11.07.2018 and the material available on record, DR could not point out if this case fell under any of the exceptions as provided in the aforesaid Circular. We also find that the aforesaid Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. We hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No. 3/2018 dated 11.07.2018. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as un-admitted, without going into the merits of the case. Appeal of the revenue is dismissed.
Issues Involved:
Disallowance of dividend income claimed as exempt by the assessee in its return of income. Analysis: The appeal was filed by the department against the order passed by the Ld. CIT(A), Ghaziabad, wherein the disallowance of dividend income claimed as exempt by the assessee was deleted. The tax in dispute was Rs. 7,06,130/-. The department's appeal was based on the disallowance made by the Assessing Officer. However, it was noted that the tax amount was less than the prescribed limit for preferring appeals before the ITAT as per Circular No. 3/2018 dated 11.07.2018. The Ld. Sr. DR failed to establish any exceptions to this circular applicable to the case. The ITAT held that the revised monetary limits mentioned in the circular would apply retrospectively to pending appeals. Consequently, considering it a low tax effect case, the appeal of the revenue was dismissed without delving into the merits of the case. In conclusion, the ITAT, in its judgment, dismissed the appeal of the revenue on the grounds of low tax effect as per Circular No. 3/2018 dated 11.07.2018. The decision was made without delving into the merits of the case due to the tax amount being below the prescribed limit for filing appeals before the ITAT.
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