ACIT 4(3)(1), MUMBAI vs. TAURIAN IRON & STEEL CO.P. LTD, MUMBAI

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ITA 3672/MUM/2017Status: DisposedITAT Mumbai29 November 2023AY 2010-113 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the CBDT circular mandates that appeals shall not be filed before the ITAT if the tax effect does not exceed Rs. 50,00,000/-. As the tax effect in this case was below the prescribed limit, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal before the ITAT against an assessment order. The tax effect involved in the appeal was Rs. 8,92,649/-.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the ITAT given the tax effect involved, in light of CBDT circulars on monetary limits for filing appeals.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “H” BENCH, MUMBAI

Hearing: 14.11.2023Pronounced: 29.11.2023

आदेश / O R D E R PER AMARJIT SINGH, AM:

1.

The present appeal filed by the revenue is directed against the order passed by the ld. CIT(A)-59, which in turn arises from the assessment order 2010-11 u/s 143(3) r.w.s 144C(1) of the Act.

2.

After taking into consideration the tax effect of Rs.8,92,649/- involved in this case it is noticed that Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the Department before the ITAT,

P a g e | DCIT-4(3)(1) Vs. M/s Taurian Iron & Steel Company Ltd. High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation.

3.

CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.50,00,000/-. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.

At para 13 of the above Circular, it has been mentioned that:

“13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.”

4.

As a step towards further management of litigation, CBDT vide Circular No. 17/2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-.

5.

In the instant appeal filed by the Department, the tax effect involved is below the monetary limit of Rs.50,00,000/-.

P a g e | DCIT-4(3)(1) Vs. M/s Taurian Iron & Steel Company Ltd. 6. The revenue shall be at liberty to point out the exceptions and to seek recall the dismissal of appeal and restoration of the appeal in case it can be shown that the appeal is covered by the exceptions.

7.

With the above observations, the appeal of the Revenue involving tax effect Rs.8,92,649/- which is less than Rs.50,00,000/- stand dismissed. Order pronounced in the open Court on 29.11.2023 Sd/- Sd/- (Aby T Varky) (Amarjit Singh) Judicial Member Accountant Member Place: Mumbai Date 29.11.2023 Rohit: PS आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file.

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