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Judgment
The present appeal is preferred by the Revenue for the assessment year 2014-15 against order dated 28.01.2019, passed by the Commissioner of Income-Tax(Appeals), Karnal.
At the outset, learned counsel for the assessee submitted that the tax effect involved in the appeal of the Revenue is below Rs. 50 lakhs. In support of his contention the learned counsel has also filed ‘tax effect calculation’ as reproduced below:
Particulars
Amount (in Rs.)
Returned income
1,40,00,000
Additions made in the assessment
Assessed income
1,40,00,000
Disputed amount before Hon’ble Tribunal
1,40,00,000
Tax on above addition @ 32.44%
45,42,300
Tax effect
45,42,300
Learned counsel submitted that the tax effect involved in the grounds raised by the Revenue being less than Rs. 50,00,000/-, the appeal of the Revenue is not maintainable in view of the CBDT Circular No. 17/2019 dated 8th August, 2019, revising the monetary limit for filing of the departmental appeals to the ITAT at Rs. 50 lakhs.
The learned Sr. DR could not dispute the aforesaid factual position that the tax effect involved in the instant appeal is less than Rs. 50 lakhs.
In view of the above factual position, the tax effect involved in the appeal being less than Rs. 50 lakhs, we deem it proper to dismiss the appeal of the Revenue in the light of the CBDT Circular No. 17/2019 dated 8th August, 2019, as not maintainable. However, if on a later date, the Revenue finds that the tax effect in dispute in the aforesaid appeal is more than the limit prescribed or it is protected by any of the exceptions provided in the CBDT Circular, it shall be at liberty to approach the Tribunal for recall of the order and reinstitution of the appeal for adjudication on merits. The Tribunal shall consider such application, as per the extant law.
In the result, in view of the aforesaid discussion, the Revenue’s appeal stands dismissed.