The Deputy CIT, Circle-2(1)(1), Ahmedabad v. India Gelatine & Chemical Ltd
[Citation -2019-LL-0911-87]

Citation 2019-LL-0911-87
Appellant Name The Deputy CIT, Circle-2(1)(1), Ahmedabad
Respondent Name India Gelatine & Chemical Ltd.
Court ITAT-Ahmedabad
Relevant Act Income-tax
Date of Order 11/09/2019
Assessment Year 2011-12
Judgment View Judgment
Keyword Tags retrospective effect • tax effect • maintainability of appeal
Bot Summary: At the outset, after going through the grounds of appeal and the impugned orders of the Revenue authorities below, a query was raised by the Bench as to applicability and maintainability of the appeal filed by the Revenue in view of recent CBDT Circular No. 17/2019 dated 08-08-2019 restricting the filling of the appeal by the Revenue where the tax effect is below Rs.50 lakhs, the ld. Prohibiting its subordinate authorities from filing of the appeal to the Tribunal against the order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.50 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present case, tax effect on the total income assessed minus the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal is filed, is less than Rs.50 lakhs. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. In view of the above, the appeal of the Revenue is dismissed due to low tax effect. In the result, the appeal of the Revenue is dismissed.


IN INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH Before: Shri Rajpal Yadav, Judicial Member And Shri Amarjit Singh, Accountant Member ITA No. 1372/Ahd/2015 Assessment Year 2011-12 Deputy CIT, India Gelatine & Circle-2(1)(1), Chemical Ltd. 7 t h Floor, Ahmedabad Vs 703/604, Shilp Building, (Appellant) Nr. Municipal Market, C.G. Road, Ahmedabad-380006 PAN:AAACI3676F (Respondent) Revenue by: Shri/Ms. Sonia Kumar, Sr. D.R. Assessee by: Shri M.J. Shah, A.R. Date of hearing : 28-08-2019 Date of pronouncement : 11-09-2019 /ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- This revenue s appeal for A.Y. 2011-12, arises from order of CIT(A)-2, Ahmedabad dated 16-02-2015, in proceedings under section 143(3) of Income Tax Act, 1961; in short Act . I.T.A No. 1372/Ahd/2015 A.Y. 2011-12 Page No 2 Dy. CIT vs. India Gelatine & Chemical Ltd. 2. At outset, after going through grounds of appeal and impugned orders of Revenue authorities below, query was raised by Bench as to applicability and maintainability of appeal filed by Revenue in view of recent CBDT Circular No. 17/2019 dated 08-08-2019 restricting filling of appeal by Revenue where tax effect is below Rs.50 lakhs, ld. DR did not dispute same and submitted that issue is left to Tribunal to be decided in accordance with law. 3. We find that appeal of Revenue is presented on 15.5.2015. On 8.8.2019 CBDT has issued Instructions bearing No. 17 of 2019 under file No. F. No. F. No. 279/Misc. 142/2007-ITJ(Pt.) prohibiting its subordinate authorities from filing of appeal to Tribunal against order of CIT(A) where tax effect by virtue of relief given by CIT(A) is less than Rs.50 lakhs. instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In present case, tax effect on total income assessed minus tax that would have been chargeable had such total income been reduced by amount of income in respect of issue against which appeal is filed, is less than Rs.50 lakhs. Further, case of Revenue does not fall within ambit of exceptions provided in Circular. Thus, keeping in view above CBDT circular and provisions of section 268A of Income Tax Act, we are of view that present appeal of Revenue deserves to be dismissed. It is accordingly dismissed. However, it is observed that in case on re-verification at end of AO it comes to notice that tax effect is more or Revenue s case falls within ambit of exceptions provided in Circular, then Department will be at liberty to approach Tribunal for recall of this order. Such application should be filed I.T.A No. 1372/Ahd/2015 A.Y. 2011-12 Page No 3 Dy. CIT vs. India Gelatine & Chemical Ltd. within time period prescribed in Act. In view of above, appeal of Revenue is dismissed due to low tax effect. 4. In result, appeal of Revenue is dismissed. Order pronounced in open court on 11-09-2019 Sd/- Sd/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 11/09/2019 / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order Deputy CIT, Circle-2(1)(1), Ahmedabad v. India Gelatine & Chemical Ltd
Report Error