Assistant Commissioner of Income Tax, Circle 1(1), Raipur V. M/s Trico Services Pvt. Ltd., , Raipur

ITA 109/RPR/2020

AI Insights

The case involves an appeal by the Assistant Commissioner of Income Tax-1(1), Raipur against M/s. Tripco Services Pvt. Ltd., which was directed against the order passed by the CIT(A)-II, Raipur. The original order was passed by the A.O. under section 143(3) of the Income-tax Act, 1961 for the assessment year 2014-15. The appeal was filed following the guidelines set by the CBDT regarding the monetary limits for filing appeals to reduce litigation. The Department decided to withdraw the appeal as the tax effect was below the specified limit of Rs. 50,00,000.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 128046 (ITAT-RAIPUR)
• Duration Of Justice: 1 year(s) 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 11-12-2022
• Assessment Year: 2014-2015
• Appeal Filed On: 30-12-2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANANJAY KUMAR TIWARY
• Assessee Lawyers: PRAVEEN KHANDELWAL
• Keywords: Tax effect; Tax effect
• Section: 143(3); 13

Judgement Text

आयकर अपीलȣय अͬधकरण Ûयायपीठ रायप ु र मɅ। IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI RAVISH SOOD, JUDICIAL MEMBER AND SHRI G D PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.109/RPR/2020 Ǔनधा[रण वष[ / Assessment Year : 2014-15 The Assistant Commissioner of Income Tax-1(1), Raipur (C.G.) . ......अपीलाथȸ / Appellant बनाम / V/s. M/s. Tripco Services Pvt. Ltd., 1 st Floor, H. No.69, Behind Atyurvedic College, Rohini Puram Road, Raipur (C.G.)-491 001 PAN : AADCT2207J ......Ĥ×यथȸ / Respondent Assessee by : Shri Praveen Khandelwal, AR Revenue by : Shri Ananjay Kumar Tiwary, Sr. DR स ु नवाई कȧ तारȣख / Date of Hearing : 12.12.2022 घोषणा कȧ तारȣख / Date of Pronouncement : 12.12.2022 2 The ACIT-1(1), Raipur Vs. M/s. Tripco Services Pvt. Ltd., ITA No. 109/RPR/2020 आदेश / ORDER PER RAVISH SOOD, JM: The present appeal filed by the revenue is directed against the order passed by the CIT(A)-II, Raipur, dated 13.08.2020, which in turn arises from the order passed by the A.O. u/s 143(3) of the Income-tax Act, 1961 (for short ‘Act’), dated 30.12.2016 for A.Y. 2014-15. 2. Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the Department before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation. 3. CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of 3 The ACIT-1(1), Raipur Vs. M/s. Tripco Services Pvt. Ltd., ITA No. 109/RPR/2020 interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. At para 13 of the above Circular, it has been mentioned that: “13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.” 4. As a step towards further management of litigation, CBDT vide Circular No. 17/2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-. 5. In the instant appeal filed by the Department the tax effect involved is below the monetary limit of Rs.50,00,000/-. Our attention was drawn by the Ld. DR to a letter dated 30.11.2022 filed by the ACIT, Circle-1(1), Raipur. It was submitted by the Ld. DR that as the tax effect involved in the present appeal was below the monetary limit prescribed by CBDT Circular No.17/2019, dated 08.08.2019 for filing of appeals before the Tribunal, therefore, as instructed, the same may be permitted to be withdrawn. 4 The ACIT-1(1), Raipur Vs. M/s. Tripco Services Pvt. Ltd., ITA No. 109/RPR/2020 6. Considering the aforesaid factual position, we herein permit the withdrawal of the present appeal. 7. Resultantly, the appeal filed by the revenue is dismissed as withdrawn. Order pronounced in the open Court on 12 th day of December, 2022. Sd/- Sd/- G D PADMAHSHALI RAVISH SOOD (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) रायप ु र/ RAIPUR ; Ǒदनांक / Dated : 12 th December, 2022 SB आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. 3. The CIT(Appeals)-II, Raipur (C.G.) 4. The Pr. CIT-II, Raipur (C.G.) 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, रायप ु र बɅच, रायप ु र / DR, ITAT, Raipur Bench, Raipur. 6. गाड[ फ़ाइल / Guard File. आदेशान ु सार / BY ORDER, // True Copy // Ǔनजी सͬचव / Private Secretary आयकर अपीलȣय अͬधकरण, रायप ु र / ITAT, Raipur.