ASSISTANT COMMISSIONER OF INCOME TAX 6(1)(1), MUMBAI vs. M/S EDWELL INFRASTRUTURE HAZIRA LTD, MUMBAI

This is an appeal preferred by the assessee against the order of the Ld. CIT(A)/NFAC dated 19.09.2022 for AY. 2014-15.

At the outset, it was brought to our notice by the Ld. AR of the assessee that the revenue appeal is hit by the tax effect since the disallowance u/s 14A of the Income Tax Act, 1961 (hereinafter “the Act”) has been made by the AO only to the tune of Rs.9,55,878/- and addition in respect of Employees Contribution of Provident Fund was also to the tune of Rs.2,24,989/-. Thus total addition made by AO was only to the tune of Rs.11,80,867/-. And therefore in the light of the CBDT Circular the department ought not to have filed the appeal against the impugned order of Ld. CIT(A). 3. We have heard the arguments advanced by Ld. Representative of the parties and perused the record. During the course of hearing, Ld. AR for the assessee pointed out that tax effect involved in this appeal A.Y. 2014-15 M/s. Edwell Infrastructure Hazira Ltd. filed by the revenue is less than Rs. 50 lacs and in view of latest CBDT circular No. 3/2018 dated 11-7-2018, and also modified circular No. 17/2019 dated 08/08/2019, appeal filed by the revenue is not maintainable and needs to be dismissed. The Ld. AR, further pointed out that, the issue involved in this appeal does not appear to be covered by exception provided under clause (e) of subsequent circular and therefore, if required the revenue may be allowed to file miscellaneous application to re-call the order. We, find that, the CBDT, recently had issued a circular no. 3/2018 dated 11-7-2018, superseding its earlier circular no. 21/2015 and enhanced monetary limit for filing appeal before various appellate authorities and accordingly, enhanced monetary limit to Rs.20,00,000/- for filing appeal before the Tribunal. Further, the board has issued one more circular vide Circular no.17/2019 dated 08/08/2019 and enhanced monetary limit for filing appeal before appellate Tribunal to Rs. 50,00,000/-. Further, in the said circular, the CBDT had instructed its officer’s to file application for withdrawal of appeal already filed or not to pursue pending appeals. We, therefore, by taking into account the CBDT circular No. 3/2018 dated 11-7-2018 and Circular no.17/2019 dated 08/08/2019 and also considering the fact that tax effect involved in the present appeal is less than the amount of monetary limit fixed by the CBDT for not filing appeal, dismiss this appeal filed by the revenue as not maintainable. However, we keep open the option to the revenue to file a miscellaneous application, if necessary, in case the issues involved in the present appeal comes within the exceptions as provided in para 10 A.Y. 2014-15 M/s. Edwell Infrastructure Hazira Ltd. of said circular and clause (e) of subsequent circular.

In the result, the appeal of the revenue is dismissed. Order pronounced in the open court on this 31/01/2023.