2019 (8) TMI 1877 - AT - Income Tax

Maintainability of appeal before Tribunal - tax limit for filing of appeal by the Revenue before the Tribunal - HELD THAT - As as per the CBDT Circulars No.03/2018 dated 11.07.2018 and Circular No.17 of 2019 dated 9th August, 2019, the tax limit for filing of appeal by the Revenue before the Tribunal has been fixed at Rs.50.00 lakhs. Since the tax effect in all these appeals is less than Rs.50.00 lakh, we are dismissing the same on account of low tax effect with the liberty to the Revenue to seek recall of the order, if any of these appeals falls within the exceptions mentioned in the Circulars cited above. In the result, all these appeals filed by the Revenue are dismissed as withdrawn and the cross objections are dismissed as infructuous.

Summary

Issues:
Appeals of the Revenue against CIT (A) orders dismissed due to low tax effect.

Analysis:
The Appellate Tribunal, ITAT Hyderabad, comprising Smt. P. Madhavi Devi and Shri. A. Mohan Alankamony, heard multiple appeals by the Revenue for various assessment years against the orders of the respective CIT (A). During the hearing, it was noted that as per CBDT Circulars No.03/2018 and Circular No.17 of 2019, the tax limit for filing appeals by the Revenue before the Tribunal was set at Rs.50.00 lakhs. Since the tax effect in all the appeals was below this threshold, the Tribunal decided to dismiss the appeals on the grounds of low tax effect. The Revenue was granted the liberty to seek a recall of the order if any of the appeals fell within the exceptions specified in the Circulars. Consequently, all the appeals by the Revenue were dismissed as withdrawn, and the cross objections were dismissed as infructuous. The order was pronounced in the Open Court on 26 August 2019.