ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE - 11, PUNE vs. CAPGEMINI INDIA PVT.LTD, MUMBAI

PDF · subscribers
ITA 293/PUN/2018Status: HeardITAT Pune17 May 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 due to low tax effect as per the relevant CBDT circulars. However, the Revenue was granted liberty to apply for revival if exceptions to the circular were found to apply.

What were the facts?

The Revenue preferred an appeal before the ITAT against an order of the CIT(A). The Revenue's counsel submitted that the appeal was not maintainable due to low tax effect, citing CBDT circulars.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT due to a low tax effect, as per CBDT guidelines.

Which sections of the Income-tax Act were involved?

Section 10A,Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE „C‟ BENCHES :: PUNE

For Appellant: Shri M.P. Lohia, Shri Nikhil Tiwari &, Shri Rajendra Agiwal, ARs
For Respondent: Shri Anurag Shrivastava, CIT-DR
Hearing: 17/05/2023Pronounced: 17/05/2023

O R D E R

Per PARTHA SARATHI CHAUDHURY, JM:

1.

This appeal preferred by the Revenue emanates from the order of Commissioner of Income Tax (Appeals)-55, Mumbai, dated 12.11.2017 for A.Y.2012-13 as per the grounds of appeal on record.

2. At the outset, ld.DR submitted before this Bench that the appeal of the Revenue is not maintainable in view of the low tax effect. In this regard, ld.DR has submitted a letter dated 17/05/2023 in support of his contention which is made part of this order:- “To, The Hon'ble Members, „C‟ Bench, Income Tax Appellate Tribunal, Pune Bench, Pune.

Capgemini India Pvt. Ltd. Sir, Sub:- Departmental Appeal in the case of M/s. Capgemini India Pvt. Ltd. A.Y. 2012-13 – reg. * * * * Please refer to the above.

2.

The above appeal was fixed for hearing before the Hon'ble „C‟ bench of the ITAT, Pune on 17/05/2023. Base on the Assessee‟s Representative statements, a query was raised by the Bench about the tax effect in the Departmental appeal.

3.

As directed, following is the addition to income which has been deleted by the CIT(A) and accordingly, the Department is in appeal before the Hon'ble bench:-

1. 1. U/s 10A deduction increased by CIT(A) by Rs.3,76,230/- 2. U/s 14A disallowance deleted by CIT(A) of Rs.36,67,457/- Thus, since the total effect on reduction of income is about Rs.40,43,687/-, the tax effect is likely to be much less than the stipulated Rs.50 lakhs. Hence, the appeal is not maintainable in light of the CBDT Circular No.17/2019, F.No.279/Misc.142/2007-ITJ(Pt.), dated 08/08/2019 read with CBDT Circular No.3/2018 dated 11/07/2018.

04. Submitted for kind consideration. Yours faithfully, Sd/- (ANURAG SRIVASTAVA) Commissioner of Income-tax. (ITAT), (DR), Pune. (ON ROTATION)”

3. Ld.AR also admitted that the Revenue‟s appeal is not maintainable due to low tax effect.

4.

Having heard the parties herein and considering the letter submitted by the ld.DR, it is evident that the instant appeal is not maintainable due to low tax effect as per CBDT Circular No.17/2019, dated 08/08/2019 read with CBDT Circular No.3/2018, dated 11/07/2018. However, we further hold that if in the near future, it is found that this case of the Revenue falls within one of the exceptions mentioned in the said circular, then Revenue shall be at liberty to Capgemini India Pvt. Ltd. apply for revival of this appeal. With these observations, the appeal of the Revenue is dismissed on low tax effect. 5. In the result, Revenue‟s appeal stands dismissed.

Order pronounced in open Court on 17th May, 2023.

More judgments on Section 10A

All 2,147 judgments and leading authorities on Section 10A →

Recent GST High Court judgments

Search GST case law →