INCOME TAX ACT, 1961

Section 268A

Appeal (Tribunal) - Maintainability - Low tax effect - Applicability of limit prescribed in CBDT Circular No. 17 of 2019, dated 8-8-2019 to appeals arising from order under section 263.

Tribunal quashed and set aside order passed by CIT under section 263. Revenue challenged this by way of appeals filed under section 260A. Assessee contended that in the appeal filed by Revenue tax effect was less than the limit prescribed in CBDT Circular No. 17 of 2019, dated 8-8-2019. Revenue's case was that circular was not applicable in the appeals arising from order under section 263. Held: So far as matters arising out of the order under section 263 is concerned, same pertain to invocation of revisional powers of CIT for revising the assessment orders, which are erroneous or prejudicial to the interest of Revenue. Therefore, when any order is passed under section 263, same would also be the order under the Act, 1961. The Circular No. 17 of 2019, dated 8-8-2019 does not distinguish the order passed under section 263 or any other section of the Act, but it refers to monetary limits prescribed in the circulars itself and if any appeal is filed, which is not a writ-matter, then monetary limits prescribed under the circular would apply and Department is bound by such monetary limits and accordingly, Department cannot pursue the matter, if monetary limit prescribed in the circular is adhered to. Accordingly, appeals were dismissed due to low tax effect.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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