ACIT 15(3), MUMBAI vs. M.N. FINANCE CORPORATION, MUMBAI

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ITA 3360/MUM/2012Status: DisposedITAT Mumbai14 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 appeal filed by the Revenue and the cross-objection filed by the assessee. This was based on CBDT Circular No. 17/2019, which sets a monetary limit for filing appeals before the ITAT.

What were the facts?

The Revenue filed an appeal before the ITAT, and the assessee filed a cross-objection. The appeal arose from an assessment order for the assessment year 2009-10.

What were the issues?

The primary issue was whether the appeal filed by the Revenue was maintainable given the monetary limit prescribed by CBDT circulars for appeals before the ITAT.

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 “D” MUMBAI

Before: SHRI MAHAVIR SINGH & SHRI S. RIFAUR RAHMAN

For Appellant: Mr. Mayank Chauhan, AR
For Respondent: Mr. C.T. Mathews, DR, Mr. Mayank Chauhan, AR
Hearing: 09/09/2021Pronounced: 14/09/2021

Heard together (2 matters)

CO. No. 111/MUM/2013
ITA No. 3360/MUM/2012

Read from the judgment's own cause title. This page is filed under one of them.

ORDER PER S. RIFAUR RAHMAN, A.M. The present appeal filed by the Revenue and cross objection filed by the assessee are against the order of Commissioner of Income Tax (Appeals)-26, Mumbai [in short ‘CIT(A)’] for the assessment year 2009-10 dated 14.03.2012 and arises 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 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

M/s M.N. Finance Corporation 3 & CO No. 111/M/2013 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 him that in case of exceptions to the above Circular, the Revenue may be allowed to bring it to the notice of the Tribunal. Considering the submission, we make it clear that the Revenue shall be at liberty to point out the exceptions to which the above Circular may not apply by filing miscellaneous applications.

5.

In view of the CBDT Circular No. 17/2019, this appeal involving tax effect of less than Rs.50,00,000/- is dismissed.

6.

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

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