Dept Appeal Below Tax Effect of Rs. 50 Lakhs: ITAT dismisses Appeal as per CBDT Circular

The Income Tax Appellate Tribunal (ITAT), Kolkata Bench, has recently, in an appeal filed before it, on finding the same to be a dept appeal below tax effect of RS 50 lacks, dismissed the same, as per a CBDT circular. The aforesaid observation was made by the Kolkata ITAT, when an appeal was preferred before it by the Revenue, as against the order of the CITA), Kolkata, vide Appeal No. 730/CIT(A)-5/Wd-13(4)/2018-19, dated 18.09.2020, passed against the order of ITO, Ward-13(4), Kolkata, under Section 147/143(3) of the Income-tax Act, 1961, dated 29.12.2018. The solitary ground taken by the revenue being with regard to the deletion of addition, made under Section 68 of the Income Tax Act, on account of unexplained cash credit for Rs.46,50,000/, it was noted by the registry that the appeal was barred by limitation, by 637 days. Hearing the opposing contentions of both the sides as submitted by Shri A. K. Tibrewal, FCA, on behalf of the assessee, and by Shri Vijay Kumar, the Addl. CIT, on behalf of the Revenue, and thereby perusing the materials available on record, the ITAT observed: “The present appeal before the Tribunal was filed on 20.05.2020. Considering these two dates there is a delay of eight days in filing the appeal and not 637 days as pointed out by registry. We find that in the appeal Memo in Form 36 the date of order and communication of the same has been mentioned in respect of the assessment order and, therefore, registry has calculated the delay of 637 days. We find that the delay of eight days in the present appeal falls during the period of Pandemic of Covid 19 which has been excluded by the Hon’ble Supreme Court in the case of suo moto Writ Petition (C) No. 3 of 2020 dated 10.01.2022 by which the period from 15.03.2020 to 28.02.2022 has been directed to be excluded for the purpose of limitation. Vide this order a further period of 90 days has been granted for providing the limitation from 01.03.2022. Accordingly, we condone the delay and proceed to admit the appeal for hearing.” “The present appeal of the revenue is covered by the Circular of CBDT No. 17/2019 dated 08.08.2019 and CBDT OM No. 279/Misc/M-93/2018-ITJ(Pt.) dated 16.09.2019, according to which where the tax effect is below the threshold limit of Rs. 50 lakh the appeals by the revenue shall be withdrawn. In the present case before us the tax effect as stated in Form 36 is of Rs.16,30,000/- and, therefore is covered by the said CBDT Circular No. 17/2019 dated 08.08.2019. However, Ld. Sr. DR had raised an objection stating that issues relating to the ground of appeal taken in the present case falls under the exception clause contained in the said CBDT circular and, therefore, has to be heard on merit. To this effect, a report was called from the Ld. AO to make a submission as to how the present appeal is covered under the exception clause contained in the CBDT circular”, considering the issue at hand the ITAT further added. With the Sr. DR having placed a copy of the said report, dated 14.11.2022, the coram of Sanjay Garg, the Judicial Member, and Girish Agrawal, the Accountant Member noted: “Considering the above report from the Ld. AO who has explicitly stated that the issue is not covered under the exception clause of the CBDT circular and OM, the present appeal is covered by the CBDT circular”. Thus, the Kolkata ITAT held: “In the result, appeal of the revenue is dismissed.” Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates