ITO 4 (1)(1), MUMBAI vs. AAMAL SECURITIES LTD., MUMBAI

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ITA 6255/MUM/2019Status: DisposedITAT Mumbai30 August 2021AY 2012-133 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 the tax effect was below the monetary limit of Rs. 50,00,000/- stipulated by CBDT Circular No. 17/2019 for filing appeals before the ITAT. The Revenue's counsel agreed that the tax effect was below the limit.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for assessment year 2012-13. The tax effect in the appeal was Rs. 39,61,885/-.

What were the issues?

Whether the Revenue's appeal should be dismissed based on the monetary limit for filing appeals as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “A” MUMBAI

Before: SHRI C.N. PRASAD & SHRI S. RIFAUR RAHMAN

For Respondent: Mr. Brajendra Kumar, DR
Hearing: 17/06/2021Pronounced: 30/08/2021

ORDER PER S. RIFAUR RAHMAN, A.M. The present appeal is filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-9, Mumbai [in short ‘CIT(A)’] for the assessment year 2012-13 dated 15.07.2019 and arises out of assessment completed u/s 143(3) r.w.s. 147 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 Aamal Securities Ltd. 2 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 purchase, ‘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.

In the instant appeal, the total tax effect is Rs.39,61,885/- as per Form No.

36.

Therefore, the Ld. counsel for the assessee submits that the appeal filed by the Revenue be dismissed.

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