DCIT 10(2)(2), MUMBAI vs. MONSANTO INDIA LTD, MUMBAI

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ITA 3490/MUM/2015Status: DisposedITAT Mumbai19 December 2022AY 2009-103 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal as withdrawn. This was based on a CBDT circular stating that appeals with a tax effect below INR 50,00,000 should not be filed.

What were the facts?

The Revenue appealed against the CIT(A)'s order which partly allowed the assessee's appeal against an assessment order. The appeal concerned the disallowance made under Section 14A of the Income Tax Act.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed due to a low tax effect, as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 14A,Section 153C,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, F BENCH, MUMBAI

order : 19.12.2022 O R D E R Per Rahul Chaudhary, Judicial Member: 1. By way of the present appeal the Revenue has challenged the order, dated 31.03.2015 passed by the Ld. Commissioner of Income Tax (Appeals)-17, Mumbai [hereinafter referred to as ‘the CIT(A)’] for the Assessment Year 2009--10, whereby the Ld. CIT(A) had partly allowed the appeal against the Assessment Order, dated 28.03.2013, passed under Section 153C read with Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

The grounds raised in the appeal are directed against the order of CIT(A) restricting the disallowance of INR 85,34,157/- made by the Assessing Officer under Section 14A of the Act to INR 11,16,018/- being 25% of the treasury cost.

1.

Assessment Year: 2009-10 3. When the appeal was taken up for hearing the Ld. Authorised Representative for the Assessee, at the outset, submitted that the tax effect in the said appeal is less than INR 50,00,000/- and therefore, in view of Circular No. 17/2019, dated 08.08.2019, issued by the Central Board of Direct Taxes (CBDT) the appeal be dismissed. We note that according to the Circular No. 17 of 2019, dated 08.08.2019, issued by the CBDT the monetary limit for filing departmental appeals before the Tribunal stands enhanced and departmental appeals are not be filed before the Tribunal in cases where the tax effect does not exceed the specified monetary limits of INR 50,00,000/-. We have perused the record. The tax effect in the present appeal is below the aforesaid specified monetary limit and therefore, the present appeal is dismissed as ‘withdrawn/not pressed’ in terms of the above-said circular with the liberty to the Revenue to file Miscellaneous Application seeking recall the present order within time limit prescribed in the Act in case on re- verification the Revenue comes to a conclusion that the tax effect is higher than the above-said specified monetary limit, or the appeal falls within the exception clauses contained in Circular No.3/2018, dated 11-7-2018 as amended by the letter [F.No.279/ Misc.142/2007-ITJ (PT)], dated 20-8-2018. In result, appeal filed by the Revenue is dismissed as withdrawn.

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