DCIT 6(3)(1), MUMBAI vs. INDIA STEEL WORKS LTD., MUMBAI

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ITA 1220/MUM/2020Status: DisposedITAT Mumbai21 April 2022AY 2010-113 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 dismissed the Revenue's appeal as not maintainable due to low tax effect, following a CBDT circular. The Revenue was given liberty to seek restoration if they could produce a revenue audit objection.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) concerning the assessment year 2010-11. The assessee did not appear for the hearing.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect, as per CBDT circular, and if an exception for revenue audit objection applies.

Which sections of the Income-tax Act were involved?

Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C‘ BENCH

For Respondent: Shri R.A. Dhyani
Hearing: 21/04/2022Pronounced: 21/04/2022

BEFORE: SHRI M.BALAGANESH, ACCOUNTANT MEMBER & MS.KAVITHA RAJAGOPAL, JUDICIAL MEMBER (Assessment Year :2010-11) Asstt. Commissioner of Vs. M/s. India Steel Works Income Tax, Ltd., 5th Floor, Room No.506, Rectifier House, 570 Aayakar Bhavan, Naigaum Cross Road M.K.Road, Mumbai-400020 Wadala, Mumbai-400 031 PAN/GIR No.AAACI1040B (Appellant) .. (Respondent) Revenue by Shri R.A. Dhyani Assessee by None Date of Hearing 21/04/2022 Date of Pronouncement 21/04/2022 आदेश / O R D E R PER M. BALAGANESH (A.M):

This appeal in A.Y.2010-11 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-12, Mumbai in appeal No.CIT(A)-12, Mumbai/10015/2017-18 dated 04/12/2019 (ld. CIT(A) in short) against the order of assessment passed u/s.154 of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 31/03/2017 by the ld. Asst. Commissioner of Income Tax, Circle 6(3)(1) (hereinafter referred to as ld. AO).

2.

None appeared on behalf of the assessee. We have learned the ld. DR and perused the materials available on record. On perusal of the records, we found that this revenue appeal is to be dismissed as not maintainable in view of the recent Circular issued by the CBDT dated 08/08/2019 wherein the revenue has been directed to withdraw the appeal preferred by it before the Tribunal if the tax effect on the disputed issues is less than or equal to Rs.50,00,000/-. It is well settled that this Circular is binding on the revenue authorities.

3.

The ld. DR stated that this appeal would not fall under the ambit of Circular dated 08/08/2019 as it falls in exception in para 10(c) of the said Circular. The ld. DR also pointed out that there was revenue audit objection in this case and the same has been accepted by the department and accordingly, this addition was made. But the ld. DR was not able to place on record the copy of revenue audit objection before us. Hence, we deem it fit and appropriate to dismiss this appeal on the ground of low tax effect by following the Circular with a liberty being given to the Revenue that in case if they are able to bring the copy of revenue audit objection on record, then the Revenue, if they so desire, may prefer a Miscellaneous Application before this Tribunal, in which event, this appeal shall get restored.

5.

In the result, appeal filed by the revenue is dismissed as not maintainable.

Order pronounced on 21/04/2022 in the open Court.

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