ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, VAPI V. ASHOKKUMAR RAMESHCHANDRA SHUKLA, VAPI

ITA 829/SRT/2024

AI Insights

The case involves an appeal by the Revenue against the order of the Learned Commissioner of Income Tax (Appeal)-4, Surat, which arose from an assessment order passed under section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2021-22. The Revenue challenged the order, but the Tribunal, referencing the CBDT Circular No. 17/2019, found that the tax effect was below Rs. 50 lakhs and dismissed the appeal. The Tribunal also noted that the case did not meet any exceptions that would allow for the appeal to proceed despite the low tax effect.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35067 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AASHISH POPHARE
• Assessee Lawyers: HARDIK VORA
• Keywords: Retrospective amendment; Tax effect
• Section: 268A

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT Before Shri Sanjay Garg, Judicial Member and Shri Bijayananda Pruseth, Accountant Member The ACIT, Central Circle, Vapi (Appellant) Vs Ashokkumar Rameshchandra Shukla C/o. M/s. Shree Raghuvir Dye Chem, Plot No. 791/3, 40 Shed Area, GIDC, Vapi-396195, Gujarat, India PAN: AGUPS7248E (Respondent) Assessee by: Shri Hardik Vora, A.R. Revenue by: Shri Aashish Pophare, CIT-D.R. Date of hearing : 05-03-2025 Date of pronouncement : 28-03-2025 आदेश/ORDER Per Sanjay Garg, Judicial Member: The present appeal has been filed by the Revenue against the order passed by the Learned Commissioner of Income Tax (Appeal)-4, Surat [hereinafter referred to as “CIT(A)’] dated 28.06.2024 arising out of the assessment order passed u/s.143(3) of the Income Tax Act, 1961 (here-in- after referred to as “the Act”) relevant to the Assessment Year 2021-22. 2. 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 8.8.2019 restricting the ITA No. 829/Srt/2024 Assessment Year 2021-22 I.T.A No. 829/Srt/2024 Ashokkumar Rameshchandra Shukla, A.Y. 2021-22 2 filling of the appeal by the Revenue where the tax effect is below Rs.50 lakhs, the ld. DR did not dispute the same and submitted that the issue is left to the Tribunal to be decided in accordance with law. 3. We find that the appeal of the Revenue is presented on 07.8.2024. On 8.8.2019 the CBDT has issued Instructions bearing No. 17 of 2019 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. Further, the case of the Revenue does not fall within the ambit of exceptions provided in the Circular. 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. It is accordingly dismissed. However, it is observed that in case on re-verification at the end of the AO it comes to the notice that the tax effect is more or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect. 4. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 28-03-2025 Sd/- Sd/- (Bijayananda Pruseth) (Sanjay Garg) Accountant Member Judicial Member Ahmedabad : Dated: 28/03/2025 I.T.A No. 829/Srt/2024 Ashokkumar Rameshchandra Shukla, A.Y. 2021-22 3 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Surat 6. Guard file. By order, // True Copy // Assistant Registrar, Income Tax Appellate Tribunal, Surat "