, IN THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER IT(SS)A NO.235/AHD/2013 / BLOCK PERIOD : [1996-97 TO 2001-02 AND 01/04/2002 T O 25/07/2002] DCIT, CIR.9 AHMEDABAD. VS. SHRI ARVIND M. PATEL 10-59, SANTOSH PARK NR. VIJAY NAGAR, NARANPURA AHMEDABAD 380 013 PAN P: AAIFM 5900 B ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI MUDIT NAGPAL, SR.DR ASSESSEE BY : MS.URVASHI SHODHAN, AR / DATE OF HEARING : 19/08/2019 / DATE OF PRONOUNCEMENT: 19/08/2019 +,/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)- XV, AHMEDABAD DATED 8.3.2013 PASSED FOR THE ABOVE B LOCK PERIOD. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL: 1A). THE LD. COMMISSIONER OF INCOME-TAX (APPEAL S)-XV, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DIRECTIN G TO ADOPT GROSS PROFIT @ RS. 1,02,04,891/- AS AGAINST RS. 1,47,78,5 90/- ADOPTED BY THE ASSESSING OFFICER ON THE GROUND OF GROSS PROFIT OF RS.1,72,38,894/- FROM 'INDIAN' & GADAR' FILMS & ALLOWING LOSS INCURRED O N FILMS 'KRANTI' & 'SHAHID'. 1B). THE LD. COMMISSIONER OF INCOME-TAX (APPEALS )-XV, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDIT ION OF RS.46,24,199/- OUT OF TOTAL ADDITION OF RS.76,77,561/- MADE ON ACC OUNT OF UNDISCLOSED IT(SS)A NO.235/AHD/2013 2 INCOME FROM FILM DISTRIBUTION BUSINESS UNDER THE NA ME OF M/S. SURYA ENTERPRISE. 2). THE LD. COMMISSIONER OF INCOME-TAX (APPEAL S)-XV, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDIT ION OF RS.4,59,000/- OUT OF TOTAL ADDITION OF RS.41,96,500/-MADE ON ACCO UNT OF CASH DEPOSIT. 3). ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XV, AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 4). IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XV, AHMEDABAD MAY BE SET-ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE H AS SUBMITTED THAT ON 8 TH AUGUST, 2019 CBDT HAS ISSUED A CIRCULAR VIDE WHICH IT HAS INSTRUCTED REVENUE AUTHORITIES NOT TO FILE APPEAL BEFORE THE T RIBUNAL WHERE TAX EFFECT IS BELOW RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE TAX EFFECT ON THE IMPUGNED ADDITIONS DISPUTED BY THE REVENUE BEING LESS THAN RS.50 LAKHS, THE PRESENT APPEAL FIL ED BY THE REVENUE IS NOT ADMISSIBLE AT THE THRESHOLD, AND THEREFORE, APPEAL OF THE REVENUE BE DISMISSED SUMMARILY AS SUCH. THOUGH THE LD.DR DOES NOT DISP UTE ABOUT THE APPLICABILITY OF THE ABOVE CIRCULAR, BUT LEFT TO TH E TRIBUNAL TO DECIDE ITS APPEAL IN ACCORDANCE WITH LAW. 4. WE FIND THAT ON 8.8.2019 THE CBDT HAS ISSUED INS TRUCTIONS BEARING NO. 17 OF 2019 BY WHICH IT HAS MODIFIED CIRCULAR NO.3 O F 2018 DATED 11.07.2018 BY ENHANCING THE MONETARY LIMIT FOR FILING APPEAL B Y THE REVENUE BEFORE THE TRIBUNAL FROM RS.20 LAKHS TO RS.50 LAKHS. IN OTHER WORDS, BY VIRTUE OF THIS LATEST MODIFICATION OF THE CIRCULAR DATED 8.8.2019, THE CBDT HAS PROHIBITED ITS SUBORDINATE AUTHORITIES FROM FILING OF THE APPEAL B EFORE THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIR TUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.50 LAKHS. THE INSTRUCTI ONS HAVE BEEN MADE IT(SS)A NO.235/AHD/2013 3 APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THERE BY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO. IN THE PRESENT CASES, 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 I N RESPECT OF THE ISSUE AGAINST WHICH APPEAL IS FILED, IS LESS THAN RS.50 L AKHS. THUS, KEEPING IN VIEW THE ABOVE CBDT CIRCULAR AND PROVISIONS OF SECTION 2 68A 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-VERIFICA TION AT THE END OF THE AO IT CAN BE DEMONSTRATED THAT THE TAX EFFECT I S MORE, OR REVENUES CASE FALLS WITHIN THE AMBIT OF EXCEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIBERTY TO APPROACH THE T RIBUNAL FOR RECALL OF THIS ORDER RELATABLE TO SUCH CASES. SUCH APPLICATI ON SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN V IEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX E FFECT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 19 TH AUGUST, 2019 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 19/08/2019