ITO, WARD - 1(1),, KALYAN SHRI AJAY RAGHUNATH PATIL, BHIWANDI

Last updated: 10 December 2020

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The Income Tax Appellate Tribunal has dismissed an appeal filed by the Revenue against Shri Ajay Raghunath Patil. The dismissal was based on the tax effect being below the Rs. 50 lakh limit stipulated by CBDT Circular No. 17/2019. This circular, applicable to pending cases, states that no appeal should be filed by the revenue if the tax effect is below this amount. The Tribunal noted that the Revenue may file a miscellaneous application to recall the order if they can provide evidence that the case falls under any exceptions mentioned in the circular.

Court :
ITAT Mumbai

Brief :
The Revenue has filed an appeal against the order of CIT(A)-2, Mumbai passed u/s 143(3) r.w.s 147 of the Income Tax Act, 1961.

Citation :
ITA No. 3688/Mum/2019

IN THE INCOME TAX APPELLATE TRIBUNAL
“A” BENCH, MUMBAI

BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER &
SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER

ITA No. 3688/Mum/2019
(Assessment Years: 2014-15)

ITO, Ward – 1(1)
1s t floor, Mohan Plaza,
Podar School, Wayle
Nagar, Kalan (W) - 421301
Appellant) ..

Vs.

Shri Ajay Raghunath Patil
602, Harsh Apartment,
Shivaji Chowk, Bhiwandi,
PIN – 421302
PAN/GIR No. : AAWPP3844P
Respondent)

Appellant by : Shri Brajendra Kumar, DR
Respondent by : Shri Sunil Makhija, AR
Date of Hearing 04/11/2020
Date of Pronouncement 04/11/2020

O R D E R

PER PAVAN KUMAR GADALE - JM:

1. The Revenue has filed an appeal against the order of CIT(A)-2, Mumbai passed u/s 143(3) r.w.s 147 of the Income Tax Act, 1961.

2. At the time of hearing, it was brought to the knowledge of the Bench, the tax effect in the appeal is below Rs.50 lakhs, therefore covered by CBDT Circular No. 17/2019. We find as per the CBDT Circular dated 08.08.2019, no appeal shall be filed bythe revenue before the Tribunal where the tax effect is below Rs 50 lakhs. Further the circular of the CBDT is also applicable to the pending cases. Accordingly, we dismiss the revenue appeal on maintainability and low tax effect.

3. Incase, if the revenue is able to provide evidencethat the case falls under any of the exceptionsprovided in the circular issued by the CBDT, then the revenue may prefer miscellaneous application for recalling of this order, if they so desire, in whichcircumstance this order shall be recalled by this Tribunal.

4. In the result, appeal filed by the revenue is dismissed.

To know more in details find the attachment file

FAQ :

The appeal was dismissed because the tax effect was below Rs. 50 lakhs, which is the threshold set by CBDT Circular No. 17/2019 for filing appeals.

This circular states that the Revenue should not file appeals before the Tribunal if the tax effect is below Rs. 50 lakhs. It also applies to pending cases.

Yes, the CBDT circular dated 08.08.2019 is applicable to pending cases.

The Revenue can file a miscellaneous application to recall this order if they can provide evidence that their case falls under any exceptions listed in the CBDT circular.