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TMI Blog2019 (2) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... s &circumstances of the case, the CIT(A) has erred in deleting the addition of Rs. 37,00,000/- made by the AO u/s. 68 of the I. Tax Act, 1961 on account of share capital/premium received by the assessee. 2. Whether in law and on facts & circumstances of the case, the CIT(A) was justified in admitting additional evidence in violation of Rule 46A of I. Tax Rules, 1962. 3. The Order of the Ld. CIT(A) is erroneous both in law and on facts. 4. Any other ground that may be adduced at the time of hearing." Identical grounds have been raised by the Revenue in all the other appeals. 3. Before us, at the outset, Ld. A.R. submitted that all the appeals of the Revenue are not maintainable on account low tax effect as per recent Circular No. 3/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals of Revenue are not maintainable. 6. We have heard the rival submissions and perused the material available on record. On perusing the grounds of appeal raised by the Revenue in all the appeals, we find that Revenue is aggrieved by the order of Ld. CIT(A) in respect of the relief given by him. It is also a fact that Ld. CIT(A) has passed a consolidated order for assessment years 2004-05 and 2005-06 in case of M/s. Mahamaya Agrotech (P) Ltd. and for assessment years 2006-07 to 2009-10 in the case of M/s. Bapu Agriculture Pvt. Ltd. As per the recent announcement of Central Board of Direct Taxes (CBDT) dated 11.07.2018 (Circular No.3 of 2018), no Department appeals are to be filed against relief given by ld. CIT(A) before the Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the benefit of circular-3/2011 when the tax effect for the assessment year/years the tax effect is less than Rs. 10 lakhs. It thereafter held that whether it is a solitary order or common order, the assessee should have the benefit of the tax effect less than Rs. 10 lakhs and in all such cases whether it is a part of the common order or a solitary order, the revenue will not be entitled to file an appeal. The relevant portion of the order reads as under: "16. Per contra, Sri K.V. Aravind, learned counsel for the Appellants refers to para 5 of Circular No. 3/2011, which reads thus:- "5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... khs. However, in case where there is no common order and an order is passed only in respect of an assessment, year and the tax effect therein is less than Rs. 10 lakhs, the revenue cannot file the appeal. 18. On thorough scrutiny of para 5 of the Circular No. 3/2011, we find that there appears to be a glaring discrimination offending the spirit of Article 14 of the Constitution. In the case of a common order passed in respect of one or more assessment year/years, if the tax effect is less than Rs. 10 lakhs, the assessee is not entitled to benefit of exemption and the revenue is not debarred from filing an appeal, even though the tax effect in respect of one or more assessment years is less than Rs. 10 lakhs. In other words, the revenue ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 11-07-2018 issued by CBDT. We further find that the aforesaid decision of Hon'ble Karnataka High Court was followed by the Bangalore Bench of Tribunal in the case of DCIT Vs. Vivek B. Chand (supra) wherein it was held that the Revenue cannot take the plea of considering cumulative tax effect. 8. Before us, Revenue has not placed any material on record to demonstrate that the aforesaid decision of Hon'ble Karnataka High Court has been set aside/stayed by higher judicial authorities or the ratio of the aforesaid decision is not applicable to the present cases. We therefore relying on the aforesaid decision of Hon'ble Karnataka High Court hold that the appeals of Revenue are not maintainable on account of low tax effect prescribed by C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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