JCIT(OSD), Central Circle, Sambalpur V. M/s. Maikal Breweries Pvt. Ltd., Bolangir

ITSSA 55/CTK/2018

AI Insights

The case involved an appeal by the Jt. Commissioner of Income Tax (OSD), Central Circle, Sambalpur against M/s. Maikal Breweries Pvt Ltd. The appeal was concerning an order from the CIT(A)-2, Bhubaneswar for the assessment year 2014-15. The primary contention was the tax effect on the disputed addition, which was below Rs. 50 lakhs. The Revenue's appeal was dismissed at the threshold based on the CBDT Circular and section 268A of the Income Tax Act, which discourage litigation over trivial tax amounts.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300298 (ITAT-CUTTACK)
• Duration Of Justice: 4 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 15-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 15-01-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 28-05-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: BINOD KUMAR AGARWALVIKASH KUMAR AGARWAL
• Keywords: Tax effect
• Section: 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE AND ARUN KHODPIA, ACCOUNTANT MEMBER Jt. Commissioner of Income Tax (OSD), Central Circle, Sambalpur PAN/GIR No. (Appellant Assessee by Per Bench This is CIT(A)-2, Bhubaneswar for the assessment year 2. Shri M.K.Gautam, ld CIT DR appeared for the revenue and Binod Kumar Agarwal/Vikash Kumar Agarwal, CAs assessee. IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI GEORGE MATHAN, JUDICIAL AND ARUN KHODPIA, ACCOUNTANT MEMBER IT(ss)A No.55/CTK/2018 Assessment Year :2014-15 Jt. Commissioner of Income Tax (OSD), Central Circle, Sambalpur Vs. M/s. Maikal Breweries Pvt Ltd., Harishankar road, Lathore, Bolangir PAN/GIR No.AADCM 1165 C (Appellant) .. ( Respondent Assessee by : / Shri Binod Kumar Agarwal/Vikash Kumar Agarwal, CAs Revenue by : Shri M.K.Gautam, Date of Hearing : 16 /01 Date of Pronouncement : 16/01 O R D E R an appeal filed by the revenue against the order of the ld Bhubaneswar dated 26.2.2018 in Appeal No. for the assessment year 2014-15. Shri M.K.Gautam, ld CIT DR appeared for the revenue and Binod Kumar Agarwal/Vikash Kumar Agarwal, CAs Page1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER 18 M/s. Maikal Breweries Pvt Ltd., Harishankar road, Lathore, Respondent) Vikash Kumar Agarwal, M.K.Gautam, CIT DR 01/2023 /01/2023 against the order of the ld in Appeal No.0774/2016-17 Shri M.K.Gautam, ld CIT DR appeared for the revenue and / Shri Binod Kumar Agarwal/Vikash Kumar Agarwal, CAs appeared for the IT(ss)A No.55/CTK/2018 Assessment Year :2014-15 Page2 | 3 3. At the outset, ld AR of the assessee submitted that the tax effect on the disputed total addition is below Rs.50 lakhs, therefore, by virtue of CBDT Circular No.17 of 2019 dated 8.8.2019, Department has been instructed not to file appeal before the Tribunal where tax effect is below Rs.50 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed at the threshold. 4. Ld CIT DR did not dispute to the contention of ld AR. 5. We have considered the rival submissions. 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 Revenue deserves to be dismissed. Accordingly, we dismiss the appeal of the revenue. 6. However, if the revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order1. IT(ss)A No.55/CTK/2018 Assessment Year :2014-15 Page3 | 3 7. In the result, appeal of the Revenue is dismissed due to low tax effect. Order dictated and pronounced in the open court on 16/01/2023. Sd/- sd/- (Arun Khodpia) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 16/01/2023 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : Jt. Commissioner of Income Tax (OSD), Central Circle, Sambalpur 2. The Respondent: M/s. Maikal Breweries Pvt Ltd., Harishankar road, Lathore, Bolangir 3. The CIT(A)-2, Bhubaneswar 4. Pr.CIT-, Sambalpur 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//