ITO-41(3)(2), MUMBAI vs. KEYUR DILIP PAREKH, MUMBAI

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ITA 1187/MUM/2023Status: DisposedITAT Mumbai05 July 2023AY 2012-133 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 held that the appeal was not maintainable as the tax effect was below the specified monetary limits. The appeal did not fall under any of the exceptions mentioned in the circulars.

What were the facts?

The Revenue filed an appeal against a penalty order for AY 2012-13. The tax effect of the appeal was Rs. 65,546, which was below the monetary limit prescribed by CBDT circulars for filing appeals before the Tribunal.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal given the tax effect is below the prescribed monetary limit as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “H”, MUMBAI

Before: VIKAS AWASTHY & MS. PADMAVATHY S.

For Appellant: Shri Milind Joshi, CA
For Respondent: Smt. Usha Gaikwad Sr.AR

O R D E R PER : MS PADMAVATHY S. (AM) This appeal by the Revenue is against the order of the Commissioner of Income-tax (Appeals) (National Faceless Appeal Centre, Delhi)(in short, ‘CIT(A)’) dated 10/02/2023 for A.Y. 2012-13 which was filed against the penalty order under section 271(1)(c) dated 01.12.2021 by National Faceless Assessment Centre (NFAC).

2.

During the course of hearing, it is noticed that the tax effect to the impugned appeal is Rs.65,546/- and therefore the bench raised query whether the appeal is sustainable on the ground of monetary limit for filing appeal before the Tribunal as 2 ITA 1187/Mum/202323 Keyur Dilip Parekh prescribed by the CBDT vide Circular No. 3 dated 11.07.2018 as amended by Circular No. 17/2019 dated 8th August, 2019. Both the parties before us agreed that the current appeal should be considered in the light of the above Circular and decided accordingly. We notice that CBDT vide Circular No. 17/2019 dated 8th August, 2019 3. amended the tax effect monetary limits for filing the appeal before the Tribunal whereby the limit was enhanced to Rs.50,00,000 from Rs.20,00,000 i.e. if the tax effect does not exceed the said monetary limits, appeals shall not be filed. We further notice that in para 4 of Circular No. 3 dated 11.07.2018 it is stated that "tax effect" in the case of penalty orders, will mean quantum of penalty deleted or reduced in the order to be appealed against. In the appeal under consideration the penalty deleted is Rs.65,546/- which is below the specified monetary limits. We also notice that the present appeal does not fall under exceptions as mentioned in para 10 of Circular No. 3 dated 11.07.2018. In view of these discussions, we dismiss the appeal as not maintainable on the ground that the tax effect is below the monetary limit as per the CBDT circulars referred herein above.

4.

In the result, appeal filed by the revenue is dismissed as not maintainable.

Order pronounced in the open court at the time of hearing on 05/07/2023.

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