ITO, WARD-7(1), KOLKATA vs. M/S. JAYANTIKA INVESTMENT & FINANCE LTD., KOLKATA

This appeal in for A.Y. 2016-17 is preferred by the revenue against the order of the Commissioner of Income Tax, National Faceless Appeal Centre, Delhi (NFAC) [Ld. CIT in short], dated 13.05.2022 and the grounds raised therein by the revenue read as under: “i. For that, the ld. CIT(A), NFAC, Delhi had erred in deleting the addition of Rs. 14,29,824/- u/s 115JB of the I.T. Act without giving due weightage to expenses incurred for earning exempt income which was disallowable u/s 14A of the Act read with Rule 8D and the fact that the assessee itself also added back expenses disallowable u/s 14A to the profit to arrive at book profit u/s 115JB of the I.T. Act in the A.Y. 2013-14.

The ld. Counsel for the assessee at the outset has pointed out that the tax effect involved in this appeal filed by the Revenue is less than the revised monetary limit of Rs. 50,00,000/- fixed by M/s. Jayantika Investment & Finance Ltd. A.Y. 2016-17 the C.B.D.T. for filing the appeals of the Revenue before the Tribunal and this position which is clearly evident from the grounds raised by the Revenue in this appeal is not disputed even by the ld. D.R. In the Circular No. 17/2019 dated 8th August, 2019 issued by the C.B.D.T., the monetary limit for filing the appeal by Revenue before the Tribunal is revised to Rs. 50,00,000/-. As further clarified in the said Circular, the monetary limit so revised is applicable even to the pending appeals and the same are directed to be withdrawn or not pressed. We accordingly treat this appeal as withdrawn/not pressed on account of low tax effect in view of the C.B.D.T. Circular No. 17/2019 dated 8th August, 2019 and dismiss the same.