Sale consideration as per the provisions of section 43CA(1) of the Income Tax Act

The Income Tax Appellate Tribunal (ITAT) has dismissed an appeal filed by the Revenue due to a low tax effect. The tribunal noted that the tax effect involved in this case was below the Rs. 50 lakhs threshold set by CBDT Circular No. 17 of 2019 for filing appeals before the ITAT. As the Revenue provided no evidence to suggest the appeal fell under any exceptions, it was deemed not maintainable.

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI
BENCH ‘B’, NEW DELHI
BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER
AND SH. SANJAY GARG, JUDICIAL MEMBER
(THROUGH VIDEO CONFERENCING)
ITA No. 5132/Del/2018
(Assessment Year : 2014-15)

ITO
Ward – 7(4),
New Delhi
PAN No. AACCD 4882 A

vs

Dove Buildmart Pvt. Ltd.
C-11, Ground Floor,
Sarda Puri, Raja Garden
New Delhi-110 015

Assessee by --None-
Revenue by Shri Jagdish Singh, Sr. D.R.
Date of hearing: 04.10.2021
Date of Pronouncement: 04.10.2021

ORDER

This appeal filed by the Revenue is directed against the order dated 09.05.2018 of the Commissioner of Income Tax (Appeals) – 3, Delhi relating to Assessment Year 2014-15.

2. On the date of hearing none appeared on behalf of the assessee nor any adjournment application was filed. The case file reveals that in the past also there has been no appearance on behalf of the assessee. In such a situation, we proceed to dispose of the appeal ex-parte qua the assessee after hearing the Learned DR.

3. We find that CBDT vide Circular No. 3/2018 dated 11.07.2018 had increased the limit for filing appeal before ITAT at Rs. 20 lakhs. The limit for filing appeals before ITAT and other authorities were enhanced by CBDT vide Circular No.17 of 2019 dated 08.08.2019. As per the aforesaid CBDT Circular dated 08.08.2019, no Department appeals are to be filed against relief given by the Learned CIT(A) before the Income Tax Appellate Tribunal unless the tax effect,excluding interest, exceeds Rs.50 lakhs. We find that in the present case, the tax effect involved is less than Rs.50 lakhs. In the absence of any material placed on record by the Revenue to demonstrate that the issue in the present appeal is covered by exceptions provided in para 10 of the aforesaid CBDT Circular o 11.07.2018, we are of the view that the monetary limit prescribed by the instructions of the CDBT Circular dated 08.08.2019 would be applicable to the present appeal of the Department. We therefore hold the present appeal of Revenue to be not maintainable on account of low tax effect. However, in case there is any error in the computation of the tax effect involved or if for any reason, the aforesaid CBDT Circular is not applicable, it would be open to the Revenue to seek revival of the appeal.

4. In the result, the appeal of Revenue is dismissed. Order pronounced in the open court on 04.10.2021,
immediately after conclusion of the hearing of the matter in virtual mode.

Please find attached the enclosed file for the full judgement