ASSISTANT COMMISSIONER OF INCOME TAX 17(3), MUMBAI vs. VIKRAM DEOKISAN SARDA, MUMBAI

ITA 6699/MUM/2017Status: DisposedITAT Mumbai30 September 2021AY 2009-104 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 on the grounds of low tax effect and maintainability, following the CBDT circular. Consequently, the assessee's cross objections were also dismissed as infructuous.

What were the facts?

The Revenue appealed against the deletion of an addition by the CIT(A). The assessee filed cross objections. The tax effect in the appeal was below Rs. 50 lakhs, which is covered by a CBDT circular.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal due to low tax effect as per CBDT circular. The impact of the CBDT circular on pending appeals.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI S RIFAUR RAHMAN & SHRI PAVAN KUMAR GADALE

For Respondent: Smt. Usha Gaikwad. DR, Shri. Mayur Kisnadwala. AR

Pronounced: 30/09/2021

आदेश / O R D E R PER PAVAN KUMAR GADALE - JM:

The Revenue has filed the appeal and the assesee has filed Cross Objections in the order of CIT(A)-28, Mumbai passed u/s 143(3)and 250 of the Income Tax Act, 1961.

CO. 358/Mum/2018 Shri Vikram Deokisan Sarda, Mumbai - 2 -

At the time of hearing, the Ld. AR submitted that the addition deleted by the CIT(A) in the grounds of appeal

of the revenue mentioned of Rs.1,50,60,107/- is not correct . Whereas, the Assessing Officer (A.O.) has made the addition of Rs.2,11,55,107/- in respect of the disputed issue .The CIT(A) has dealt at page 45 Para 18 of the order and has deleted the total addition.The Ld. AR also filed a brief note working out the low tax effect on 28.09.2021.

3. Contra, the Ld. DR has acknowledged the receipt of this low tax effect statement and fairly accepted the same.

4. We heard the rival submissions and perused the material on record. Prima-facie, the tax effect in the appeal is below Rs.50 lakhs, therefore covered by CBDT Circular No. 17/2019. 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. At this Juncture,We considered it appropriate to refer to the observations of the CIT(A) at page 45 Para 18.1 as under:

CO. 358/Mum/2018 Shri Vikram Deokisan Sarda, Mumbai - 3 - 18.1 The facts of the impugned year are identical to that of the earlier year and the AO, neither in the assessment order nor in the remand report, has brought out any distinguishing feature between the two. Respectfully, following the decision of the Hon’ble Tribunal in the appellants own case, which is binding on me, the addition of Rs. 60,95,000/- also is deleted; hence the total addition aggregating to Rs. 2,11,55,107/- is herby deleted. In the result, the appeal is partly allowed.

On perusal of the assessment order of the A.O at Para 7 in the computation of Total income, the A.O. has made an addition of 2,11,55,107/- and CIT(A) has deleted the addition as discussed in the above paragraphs and Ld.DR has also accepted these facts. We find 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.

CO. 358/Mum/2018 Shri Vikram Deokisan Sarda, Mumbai - 4 - CO. No. 358/Mum/2018 7. Since the revenue appeal is dismissed due to low tax effect, the Cross Objection filed by the assessee becomes infractuous and is dismissed.

In the result, the appeal filed by the revenue and Cross Objection filed by the assessee are dismissed.

Order pronounced in the open court on 30.09.2021

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