What did the Tribunal hold?

The Tribunal held that the tax effect in the appeal was below the revised monetary limit specified by CBDT circulars. Therefore, the appeal was not maintainable.

The Revenue appealed an order where the CIT(A) deleted a disallowance of Rs. 4,04,711. The assessee argued that the tax effect was below the revised monetary limit for appeals to the Tribunal as per CBDT circulars.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the Tribunal considering the tax effect and the applicability of CBDT circulars regarding monetary limits for appeals.

DCIT vs Brightstar Syntex Pvt.Ltd. | ITAT Mumbai 2022

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI PRAMOD KUMAR & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Vimal Punmiya, C.A

For Respondent: Shri C.T. Mathews, Sr. A.R

The present appeal has been preferred by the Revenue challenging the order dated 17/10/2021, passed under section 250 of the Income Tax Act, 1961 ("the Act") by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, for the assessment year 2014– 15.

Brightstar Syntex Pvt. Ltd. ITA no.2495/Mum./2021

At the outset, the leaned A.R. appearing for the assessee submitted that vide impugned order disallowance of Rs. 4,04,711 was deleted and thus, the tax effect on the amount disputed by the Revenue is below the revised monetary limit of Rs.50 lakh applicable to appeals before the Tribunal, as per CBDT Circular no.17 of 2019, dated 8th August 2019. Further, he submitted, none of the exceptions provided in CBDT Circular no.3 of 2018, dated 11th July 2018 r/w circular F. no.279/Misc./142/2007– ITJ–(Pt) dated 20th August 2018, would apply to Revenue’s appeal. Thus, the learned A.R. submitted that Revenue’s appeal being covered under the aforesaid Circulars is not maintainable.

The learned Departmental Representative could not produce any material before us to controvert the submission so made on behalf of the assessee.

Having considered the submissions and perused the material available on record, we are of the view that the tax effect on the amount disputed by the Revenue in the present appeal is below the revised monetary limit of Rs. 50 lakh as per CBDT Circular no.17/2019, dated 8th August 2019, r/w CBDT Circular no.3/2018, dated 11th July 2018, r/w circular F. no.279/Misc./142/2007–ITJ–(Pt) dated 20th August 2018. In view of the aforesaid, Revenue’s appeal deserves to be dismissed. However, the Revenue is given liberty to seek recall of this order if, at a later point of time, it is found that the appeal falls under any of the exceptions provided in the Circulars referred to above.

Brightstar Syntex Pvt. Ltd. ITA no.2495/Mum./2021

In the result, appeal by the Revenue appeal is dismissed. Order pronounced in the open court on 06/06/2022

DCIT 1(2)(1), MUMBAI vs. BRIGHTSTAR SYNTEX PVT.LTD., MUMBAI

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