ASSTT. CIT,CIRCLE-15(1)(2), MUMBAI vs. M/S. BALMER LAWRIE VAN LEER LTD., NAVI MUMBAI

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ITA 1345/MUM/2021Status: DisposedITAT Mumbai17 February 2022AY 2011-123 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the appeal filed by the Revenue. This was done in accordance with a CBDT circular that mandates dismissal of appeals with a tax effect below a certain monetary limit.

What were the facts?

The Revenue department appealed the ITAT against an order of the CIT(A) that deleted a disallowance made by the Assessing Officer. The disallowance was related to expenses incurred in relation to earning exempt income.

What were the issues?

Whether the appeal filed by the Revenue should be dismissed due to low tax effect as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 14A,Section 8D(2)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, B BENCH, MUMBAI

Hearing: 10/02/2022Pronounced: 17/02/2022

आदेश / O R D E R

Per Rahul Chaudhary, Judicial Member: 1. By way of the present appeal the Appellant/Department has challenged the order dated 27.02.2020 passed by the Ld. Commissioner of Income Tax (Appeals)- Mumbai-24 [‘CIT(A)’] under section 250 of the Income Tax Act, 1961 [Act] in appeal [CIT(A)- 24/ACIT-15(1)(2)/IT-10207/2018-19] for the assessment year 2011-12, whereby the Ld. CIT(A) had allowed the appeal filed by the Assessee against the assessment order, dated 19.12.2018, passed under section 143(3) read with Section 147 of the Act.

2.

The Revenue has raised the following grounds of appeal:-

1.

1. Whether on the facts and circumstances of the case and in law, the ld. CIT(A) was right in deleting the entire disallowance of Rs. 1,16,35,093/-

Assessing Officer u/s 14A r.w.s. 8D(2)(ii) on merits of the case?”

3.

According to the Circular No. 17 of 2019, dated 08.08.2019, issued by the Central Board of Direct Taxes (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 Lakhs. We have perused the record. The tax effect in the present appeal below the aforesaid specified monetary limit and therefore, the present appeal is dismissed as „withdrawn/not pressed‟ in terms of the above-said circular.

4.

It is, however, made clear that in case on re-verification the Revenue comes to the conclusion that the tax effect is higher than the above-said specified monetary limit, or the appeal falls within the exemption clause as 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 then the Revenue would be at liberty to file Miscellaneous Application seeking recall the present order. The application should be filed within time limit prescribed in the Act.

5.

In the result, this appeal is dismissed as withdrawn.

Order pronounced in the open court on 17th February, 2022.

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