The ITO, International Taxation, Gandhidham V. M/s. Aditya Marine Ltd., Gandhidham-Kutch

ITA 58/RJT/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 1709 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Rajkot
• Assessment Year: 2017-2018
• Appeal Filed On: 14-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASHTA MANIYAR
• Keywords: Tax effect; Tax effect
• Section: 268A

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, राजकोट 瀈यायपीठ 瀈यायपीठ瀈यायपीठ 瀈यायपीठ, , , , राजकोट IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted Through Virtual Court) ] ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SMT.SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER ITA No.58/RJT/2019 Assessment Year :2017-18 ITO (International Taxation) Gandhidham. Vs M/s.Aditya Marine Ltd. (Agent of M/s.Martrade Gulf Logistics, FZCO, UAE) Room No.11-13, Dhiraj Chambers Plot No.36, Sec-9/A Gandhidham 370201. अपीलाथ / (Appellant) यथ /(Respondent) Assessee by : Smt.Ashta Maniyar, Ld.AR Revenue by : Shri B.D. Gupta, Ld.Sr.DR स ु नवाई क तार ख/Date of Hearing : 29/07/2022 घोषणा क तार ख /Date of Pronouncement: 29/07/2022 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER Present appeal has been filed by the Revenue against order passed by the ld.Commissioner of Income-Tax (Appeals)-13, Ahmedabad [hereinafter referred to as “CIT(A)”] dated 28.12.2018 pertaining to the Asst.Year 2017-18 passed under section 250(6) of the Income Tax Act, 1961 ("the Act" for short). 2. At the outset, the ld.counsel for the assessee has raised a preliminary objection that the appeal filed by the Revenue is not maintainable because of tax effect involved in this appeal is below Rs.50 lakhs in view of the CBDT circular dated 8.8.2019 prohibiting ITA No.58/Rjt/2019 2 of the appeal before the Tribunal. On a query by the Bench about the tax effect involved in the present appeal, the Department has filed a letter dated 29.7.2022 wherein tax effect stated to be Rs.35,23,290/- which is below the threshold limit prescribed by the CBDT for filing appeal by the Revenue before the Tribunal. The contents of the letter read as under: “2. The hearing in the case was adjourned for a day as the AR of the assessee pointed out that the tax effect in the case was below 5 lacs and therefore not maintainable in view of Circular No.17 of 2019. In this connection, a clarification was sought from the ITO (Int.Tax.), Gandhidham. Vide his mail dated 28.7.2022 (copy enclosed)l, the ITO has intimated that the tax effect in the case was Rs.35,23,290/- only. In view of the above, the appeal filed is not maintainable and may be withdrawn. 3. Submitted for kind consideration. Yours faithfully, Sd/- (B.D.Gupta) Joint.Commissioner of Income-tax (Sr.D.R.,) ITAT, Rajkot In view of the above letter of the Department, the ld.DR has left the issue to the Tribunal to pass appropriate order in accordance with law. 3. After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is less than Rs.50 lakhs, and therefore, 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 ITA No.58/Rjt/2019 3 Revenue is not maintainable and to be dismissed accordingly. It is dismissed. 4. In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Court on 29 th July, 2022 at Ahmedabad. Sd/- Sd/- (SUCHITRA R. KAMBLE) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 29/07/2022