THE ACIT, TRIVANDRUM vs. M/S.ENVESTNET ASSET MANAGEMENT INDIA (P) LTD, TRIVANDRUM

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ITA 543/COCH/2015Status: DisposedITAT Cochin10 October 2019AY 2011-123 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal as not maintainable, citing CBDT Circular No. 17/2019 which sets a monetary limit for appeals. Consequently, the assessee's cross-objection was dismissed as infructuous.

What were the facts?

The Revenue filed an appeal before the ITAT, but the tax effect was less than Rs. 50 lakh. The assessee had also filed a cross-objection.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the tax effect below the prescribed monetary limit. The impact of the assessee's cross-objection upon dismissal of the Revenue's appeal.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Chandra Poojari, AM & Shri George George K, JM

For Respondent: DR Assessee by : Sri.Shatanik Chakrabarty, Advocate &
Hearing: 10.10.2019Pronounced: 10.10.2019

Heard together (2 matters)

TC 4/2035
CO No.7/Coch/2016

Read from the judgment's own cause title. This page is filed under one of them.

This appeal at the instance of the Revenue and Cross Objection preferred by the assessee are directed against the direction of the Dispute Resolution Panel dated 01.10.2015 passed u/s 143(3) r.w.s. 92CA r.w.s. 144C of the I.T.Act. The relevant assessment year is 2011-2012.

2.

At the very outset, it is observed that the tax effect in the appeal filed by the Revenue is less than Rs.50 lakh, and IT(TP)A No.543/Coch/2015 CO 7/Coch/2016 2 M/s.Envestnet Asset Management India (P) Ltd. therefore, the Circular No. 17/2019 dated 8th August, 2019, issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under Sec. 268A of the I.T. Act comes into play, wherein, the monetary limit for filing the appeal(s) by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of reducing the tax litigation. Vide para 2 of the said circular (supra), it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 50 lakh, appeal should not be filed. Thus, taking a note of CBDT Circular No. 17/2019 dated 8th August, 2019 and considering the fact that the tax effect in the instant appeal is less than Rs.50 lakh, the present appeal deserves to be dismissed, as not maintainable. However, we make it clear that the issue(s) raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so, advised.

3.

Accordingly in the light of CBDT Circular No.17/2019 dated 08th August, 2019, the appeal stands dismissed.

CO No.7/Coch/2016

4.

At the time of hearing before us, the learned Counsel for the assessee submitted that if the appeal filed by the Department is dismissed, the assessee would not pursue the IT(TP)A No.543/Coch/2015 CO 7/Coch/2016 3 M/s.Envestnet Asset Management India (P) Ltd. cross objection filed by the assessee. Since we have dismissed the appeal filed by the Revenue, the cross objection filed by the assessee is dismissed as infructuous.

5.

In the result, the appeal filed by the Revenue and the cross objection filed by the assessee are dismissed.

Order pronounced on this 10th day of October, 2019.

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