DEPUTY COMMISSIONER OF INCOME-TAX, PUNE V. M/S. COLUMN SOFTWARE TECHNOLOGIES PVT.LTD, PUNE

MA 269/PUN/2022

AI Insights

The case revolves around a Miscellaneous Application by the Revenue against a previous ITAT decision which dismissed their appeal due to low tax effect, as per CBDT Circular No. 3/2018. The Revenue contended that the tax effect was actually above the threshold of Rs. 20 lakhs, citing a tax effect of Rs. 20,06,907 on an amount of Rs. 60,41,712. However, the ITAT pointed out that the threshold for filing appeals had been raised to Rs. 60 lakhs in 2024, and the Revenue had not withdrawn their application despite these changes. The court dismissed the application, advising the Revenue to avoid such unnecessary litigation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 30113 (ITAT-PUNE)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Laws Referred To: CBDT Circular No. 3/2018, CBDT Circular No.09/2024, CBDT Circular No.17/2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A.D.KULKARNI
• Keywords: Tax effect

Judgement Text

" ।आयकर अपीलीय अिधकरण ”बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER Miscellaneous Application No.269/PUN/2022 (arising out of ITA No.1113/PUN/2017) िनधाᭅरण वषᭅ / Assessment Year: 2011-12 The Deputy Commissioner of Income Tax, Pune. V s M/s.Column Software Technologies Pvt. Ltd., 6th Floor, B-Wing, S.No.150, Lohia Jain, IT Park, Nr.Kothrud Deport, Paud Road, Cjhandani Chowk, Pune – 411038. PAN: AACCC8915D Appellant / Revenue Respondent / Assessee Assessee by None Revenue by Shri A.D.Kulkarni – Addl.CIT(DR) Date of hearing 22/11/2024 Date of pronouncement 10/01/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This Miscellaneous application filed by the Revenue against the Tribunal order in ITA No.1113/PUN/2017 for A.Y.2011-12, dated 26.07.2018. 2. The Revenue has stated in the Miscellaneous Application as under : MA No.269/PUN/2022 2 “The Hon’ble ITAT has dismissed the appeal of the Department observing low tax effect as prescribed in CBDT Circular No. 3/2018 dtd. 11/07/2018. However, on perusal of the records it is found that the amount involved against the issue is Rs.60,41,712/- for which tax effect comes to Rs. 20,06,907/-.(Tax @ 30% + Surcharge@10% +Educating cess @3%) which is marginally above the threshold limit i.e. Rs.20,00,000/- as prescribed in the CBDT Circular 3/2018 for filing of appeal before Hon’ble Tribunal. It is therefore, humbly prayed to your Honour that the appeal filed by the Department vide appeal no. 1113/PUN/2017 may kindly be restored and decided on merit.” 3. The ITAT in ITA No.1113/PUN/2017 vide order dated 26.07.2018 dismissed the appeal of the Revenue on account of Low Tax Effect. Revenue has pleaded by Miscellaneous Application that Tax Effect in the said case is Rs.20,06,907/-, therefore, Revenue pleaded that Tax Effect is more than Rs.20 lakhs mentioned in CBDT Circular No.03/2018 dated 11.07.2018. However, we have brought to the notice of the ld.DR that recently CBDT vide Circular No.09/2024 dated 17.09.2024 has increased the limit to Rs.60 lakhs, for filing the appeal before ITAT. Earlier vide CBDT Circular No.17/2019, the limit for filing the appeal before ITAT was increased to Rs.50 lakhs. Ld.DR has accepted this fact. Thus, CBDT has increased the tax limit twice, in spite of MA No.269/PUN/2022 3 that ridiculously, Joint Commissioner of Income Tax, Circle-1(1), Pune has filed a Miscellaneous Application in this case in 2019 and has not even bothered to withdraw the application when tax effect was increased to Rs.50 lakhs in 2019 and then Rs.60 lakhs in 2024. 4. Ld.DR has not pleaded any other issue. Accordingly, the Miscellaneous Application of the Revenue is dismissed. Revenue is also requested to avoid such unnecessary litigation to save the precious judicial time. 5. In the result, Miscellaneous Application of the Revenue is dismissed. Order pronounced in the open Court on 10th January, 2025. Sd/- Sd/- (VINAY BHAMORE) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 10th Jan, 2025/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. MA No.269/PUN/2022 4 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune. "