SHRI TARCHAND MOTILAL KOTECHA , BULDHANA V. INCOME TAX OFFICER WARD -1, KHAMGAON

CO 7/NAG/2019

AI Insights

This case involves an appeal by the Income Tax Officer (ITO), Ward-1, Khamgaon against Tarchand Motilal Kotecha concerning the assessment year 2011-12. The appeal and the subsequent Cross Objection (CO) arose from the order of the Commissioner of Income Tax (Appeals)-1, Nagpur. The primary contention was the maintainability of the Revenue's appeal based on the tax effect, which was found to be below the threshold of Rs. 50 lakhs as stipulated by the CBDT Circulars. Both parties agreed on the non-maintainability due to the low tax effect, leading to the dismissal of both the appeal and the CO.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136653 (ITAT-NAGPUR)
• Duration Of Justice: 4 year(s) 2 month(s) 8 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 27-08-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 22-08-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 18-06-2019
• Laws Referred To: CBDT Circular No.17/2019, CBDT Circular No.3/2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH :: NAGPUR BEFORE SHRI R.S. SYAL, HON. VICE-PRESIDENT & SHRI PARTHA SARATHI CHAUDHURY, HON. JUDICIAL MEMBER (Through virtual hearing) ITA No. 49/NAG/2019 (A.Y. 2011-12) ITO, Ward-1, Khamgaon. vs Tarchand Motilal Kotecha, Kotecha Bhavan, Buldhan Road, Malkapur, Buldhana. PAN : ANGPK 2296 R Appellant/Revenue Respondent/Assessee C.O.No. 07/NAG/2019 (Arising out of ITA No. 49/NAG/2019) (A.Y. 2011-12) Tarchand Motilal Kotecha, Kotecha Bhavan, Buldhan Road, Malkapur, Buldhana. PAN : ANGPK 2296 R vs ITO, Ward-1, Khamgaon. Appellant/Revenue Respondent/Assessee Assessee by : Shri Vinay Kawdia, AR Revenue by : Shri Sanjay Agrawal, DR Date of hearing : 23/08/2023 Date of pronouncement : 28/08/2023 O R D E R Per PARTHA SARATHI CHAUDHURY, JM: This appeal by the Revenue and the Cross Objection (CO) by the assessee emanates from the order of Commissioner of Income Tax (Appeals)-1, Nagpur, dated 14.12.2018 for A.Y.2011-12 as per the grounds of appeal on record. ITA No. 49/NAG/2019 C.O.No. 07/NAG/2019 Tarachand Motilal Kotecha 2 2. At the very outset, ld.AR of the assessee has submitted that tax effect involved in the Revenue’s appeal is below Rs.50.00 lakhs and as per the CBDT Circular No.17/2019 dated 08/08/2019 read with CBDT Circular No.3/2018 dated 11/07/2018, the appeal filed by the Revenue is not maintainable. 3. Ld.DR admitted the fact that the appeal of the Revenue is not maintainable due to low tax effect. 4. Having heard the parties and considering the materials on record, we find that the appeal filed by the Revenue is not maintainable due to low tax effect as per CBDT Circular No.17/2019, dated 08/08/2019 read with CBDT Circular No.3/2018, dated 11/07/2018. However, we further hold that if in the near future, it is found that this case of the Revenue falls within one of the exceptions mentioned in the said circular, then Revenue shall be at liberty to apply for revival of this appeal. With these observations, the appeal of the Revenue is dismissed on low tax effect. 5. As the Revenue’s appeal is dismissed on the ground of low tax effect, the CO filed by the assessee has become infructuous and is accordingly dismissed. ITA No. 49/NAG/2019 C.O.No. 07/NAG/2019 Tarachand Motilal Kotecha 3 6. In the result, appeal of the Revenue and the CO of the assessee are dismissed. Order pronounced in open Court on 28 th August, 2023. Sd/- Sd/- (R.S. SYAL) (PARTHA SARATHI CHAUDHURY) VICE-PRESIDENT JUDICIAL MEMBER Dated : 28 th August, 2023 vr/- Copy to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT concerned. 5. The DR, ITAT, Nagpur Bench, Nagpur. 6. Guard File. By Order // TRUE COPY // Senior Private Secretary ITAT, Pune.