The Tax Publishers2020 TaxPub(DT) 3890 (Mad-HC) : (2020) 275 TAXMAN 0017

INCOME TAX ACT, 1961

Section 254

Where Tribunal dismissed appeal of revenue on ground of low tax effect, considering fact that Tribunal failed to consider that case of revenue was covered by exceptions provided under clause 10(c) of Circular No. 3 of 2018 wherein it is clearly stated that the cases involving revenue audit objection which is accepted by department, are to be disposed of on merits, order of Tribunal was set aside.

Appeal (Tribunal) - Dismissal of Revenue's appeal due to low tax effect - Case of revenue covered by exception as it involved revenue audit objection -

Revenue challenged order of Tribunal dismissing departmental appeal on ground of low tax effect. Revenue contended that Tribunal failed to consider that case was covered by exceptions provided under clause 10(c) of Circular No. 3 of 2018 wherein it is clearly stated that the cases involving revenue audit objection which is accepted by department are to be disposed of on merits. Held: It was found that there was an audit objection which was raised and if this was so, case would fall within exception pointed out under clause 10(c) of Circular No. 3 of 2018, dated 11-7-2018. Subsequent Circular issued in the year 2019 also contains very same exceptional clauses and even in the new Circular, Revenue would be entitled to pursue the remedy. Thus, Tribunal had erred in dismissing the Revenue's appeal on the ground of low tax effect.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2009-10


INCOME TAX ACT, 1961

Section 10A

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