ITO 3(3)(4), MUMBAI vs. M/S WATERMARK CAPITAL LTD(PREVIOUSLY WATERMARK FINANCIAL CONSULTANTS LTD), MUMBAI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the revenue's appeal was not maintainable due to the low tax effect, as per the CBDT circular. The circular is also applicable to pending cases.
What were the facts?
The revenue filed an appeal against an order of the CIT(A). The assessee's representative submitted that the tax effect was below Rs. 50 lakhs, making it eligible for dismissal as per CBDT Circular No. 17/2019.
What were the issues?
Whether the revenue's appeal is maintainable before the Tribunal when the tax effect is below the threshold specified in the CBDT circular.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI PRASHANT MAHARISHI, ACCOUNTAT MEMBER & SHRI PAVAN KUMAR GADALES RIFAUR
O R D E R
PER PAVAN KUMAR GADALE, JM:
The revenue has filed the appeal against the order passed by the Commissioner of Income Tax (Appeals)-8, Mumbai passed u/s 143(3) and 250 of the Act.
At the time of hearing, the Ld.AR of the assessee submitted that the tax effect in the appeal is below Rs.50 lakhs and is covered by the CBDT Circular No. 17/2019 dated 08.08.2019. Further the Ld. AR submitted that the M/s Watermark Capital Ltd.,., Mumbai. - 2 - addition made by the A.O is Rs 23,75,261/- and the CIT(A) has granted partial relief to the assessee and also the tax effect in the appeal is below Rs.50 lakhs. The Ld.DR has accepted the low tax effect aspects and applicability of CBDT circular. We find as per the CBDT Circular dated 08.08.2019, no appeal shall be filed by the revenue before the Hon’ble Tribunal where the tax effect is below Rs 50 lakhs. Further the circular of the CBDT is also applicable to the pending cases. Accordingly, we dismiss the revenue appeal on maintainability and low tax effect.
In case, if the revenue is able to provide evidence that the case falls under any of the exceptions provided in the circular issued by the CBDT. The revenue may prefer miscellaneous application for recalling of this order, if they so desire, in which circumstances, this order shall be recalled by the Hon’ble Tribunal.
In the result, the appeal filed by the revenue is dismissed.
Order pronounced in the open Court on 12.07.2022 Sd/- Sd/- (PRASHANT MAHARISHI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 12.07.2022
M/s Watermark Capital Ltd.,., Mumbai. - 3 -
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