ASST CIT 6 (2)(1), MUMBAI vs. M/S CHANVIM ENGINEERING PVT LTD, MUMBAI

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ITA 6965/MUM/2019Status: DisposedITAT Mumbai26 October 2021AY 2014-153 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 noted that CBDT Circular No. 17/2019 mandates that appeals with a tax effect below Rs. 50,00,000/- should not be filed before the ITAT. Consequently, the appeals were dismissed on this ground.

What were the facts?

The Revenue filed appeals before the ITAT for assessment years 2014-15 and 2016-17. The Departmental Representative conceded that the tax effect in these appeals was below the monetary limit prescribed by CBDT Circular No. 17/2019.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the ITAT given the tax effect is below the prescribed monetary limit as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “C” MUMBAI

Before: SHRI S. RIFAUR RAHMAN & SHRI RAVISH SOOD

For Appellant: Mr. Pratik Soni, AR
For Respondent: Ms. Shreekala Pardeshi, DR, Mr. Pratik Soni, AR
Hearing: 25/08/2021Pronounced: 26/10/2021

ORDER PER S. RIFAUR RAHMAN, A.M. The captioned appeals filed by the Revenue are directed against the order of the Commissioner of Income Tax (Appeals)-12, Mumbai [in short ‘CIT(A)’] for the assessment years 2014-15 & 2016-17 and arise out of assessment completed u/s 143(3) of the Income Tax Act, 1961 (in short the Act). 2. Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further

M/s Chanvim Engineering Pvt. Ltd. 2 & 5697/M/2019 enhancement of monetary limit for filing of appeals by the Revenue before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation.

3.

CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/- . For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. At para 13 of the said Circular, it has been mentioned that:

13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.

4. As a step towards further management of litigation, CBDT vide Circular No. 17/2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-.”

4.

Before us, the Ld. Departmental Representative (DR) fairly agrees that the tax effect herein is below the monetary limit of Rs.50,00,000/- fixed by the above Circular for filing of appeals before the ITAT. However, it is pleaded by M/s Chanvim Engineering Pvt. Ltd. 3 & 5697/M/2019

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