The Tax Publishers2019 TaxPub(DT) 7851 (Pune-Trib)

INCOME TAX ACT, 1961

Section 254

As the tax effect involved in the appeal was less than the monetary limit i.e. Rs. 50 lakhs ,prescribed by the CBDT Circular No. 17/2019 for filing of appeals before the Tribunal by the Department, appeal was dismissed on account of low tax effect.

Appeal(Tribunal) - Maintainability - Low tax effect -

AO made addition on account of undisclosed income from sale of shares under the head 'Income from other sources'. CIT (A) held that the income declared by the assessee as short term capital gain was assessable under the head 'Income from business'. Assessee contended that the appeal of Revenue was liable to be dismissed on account of low tax effect in the light of CBDT Circular No. 17/2019, wherein the monetary limit for filing of appeals by the Department has been enhanced to Rs. 50 lakhs. Revenue assailed the change of head of income from “Income from other sources” to “Income from Business”. Held: Since the tax effect involved in instant appeal was less than the monetary limit prescribed by the CBDT Circular No. 17/2019 for filing of appeals before the Tribunal by the Department wherein the monetary limit for filing of appeals by the Department has been enhanced to Rs. 50 lakhs, appeal was dismissed on account of low tax effect.

REFERRED : Superintending Engineer & Ors. v. B. Subba Reddy 1999 AIR SCW 1479,M/s. Solidcore Techsoft Systems v. ITO [C.O. No. 3/Bang/2019] dated 10-5-2019,DBS Bank Ltd. v. Dy. DDIT-(International Taxation) [C.O. No. 189/Mum/2013] dated 15-6-2016,ACIT v. Kripa Chemicals (P.) Ltd. (2002) 82 ITD 449 (Pune) : 2002 TaxPub(DT) 0191 (Pune-Trib)

FAVOUR : In assessee's favour

A.Y. : 2009-10

INCOME TAX ACT, 1961

Section 36(1)(vii)

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