The ITO(TDS)-3, Jamnagar, Jamnagar V. Shri Puranmal Jamanlal Kabra, Jamnagar

ITA 107/RJT/2019

AI Insights

The case involves an appeal by the ITO (TDS)-3 Jamnagar against Shri Puranmal Jamanlal Kabra concerning proceedings under section 206C(6)/206C(7) of the Income Tax Act, 1961 for the Assessment Year 2013-14. The appeal was dismissed by the Income Tax Appellate Tribunal, Rajkot Bench, due to the low tax effect, guided by the CBDT Circular No. 17/2019, which prohibits filing appeals by the Revenue if the tax effect is below Rs. 50 lakhs. The Tribunal noted that the tax effect in this case was below the threshold and did not meet any exceptions to warrant an appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124051 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 31-01-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 06-05-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect; TDS
• Section: 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH VIRTUAL COURT ] Before: Shri Waseem Ahmed, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member Th e ITO (TDS)-3 Ja mnagar (Appellant) Vs Shri Puranmal J amanlal Kabra, Jamnagar PAN: AM P PK89 10J (Resp ondent) Asses see by : None Revenue by : Shri B. D. Gupta, Sr. D. R. Date of hearing : 01-02 -2023 Date of pronouncement : 24-02-2023 आदेश/ORDER PER : SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:- This assessee’s appeal for A.Y. 2013-14, arises from order of the CIT(A), Jamnagar dated 19-02-2019, in proceedings under section 206C(6)/206C(7) of the Income Tax Act, 1961; in short “the Act”. ITA No. 107/Rjt/2019 Assessment Year 2013-14 I.T.A No. 107/Rjt/2019 A.Y. 2013-14 Page No ITO (TDS)-3 vs. Shri Puranmal Jamanlal Kabra 2 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 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 7.5.2019. 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 I.T.A No. 107/Rjt/2019 A.Y. 2013-14 Page No ITO (TDS)-3 vs. Shri Puranmal Jamanlal Kabra 3 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 24-02-2023 Sd/- Sd/- (WASEEM AHMED) (SIDHHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 24/02/2023 आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order, Assistant Registrar, Income Tax Appellate Tribunal, Rajkot