ASST CIT CC 1 (3), MUMBAI vs. M/S NEMINATH HOMES P LTD., MUMBAI

This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-47, Mumbai [in short ‘the CIT(A)’ ] dated 23/10/2019 for the assessment year 2010-11.

Shri Prakash Jhunjhunwala appearing on behalf of the assessee submitted at the outset that appeal of the Revenue is liable to be dismissed on account of low tax effect in the light of recent CBDT Circular No.17/2019 dated 08/08/2019. The ld. Authorized Representative for the assessee furnished working of Tax on disputed issues. As per the working submitted by ld. Authorized Representative for the assessee the disputed tax amount is Rs.11,91,195/-.

Shri Sanjay J. Sethi representing the Department admitted that tax effect is less than Rs.50 Lakhs, however, the ld. Departmental Representative vehemently contended that the appeal by Department falls under exception prescribed in para -10(e) of Circular dated 11/07/2018 and further amended vide communication dated 20/08/2018.

Both sides heard. The tax effect involved in this appeal is less than the monetary limit prescribed by the recent CBDT Circular No. 17/2019, dated 08-08-2019 for filing of appeals before the Tribunal by the Department. Therefore, the appeal by Revenue is liable to be dismissed on account of low tax effect.

The ld. Departmental Representative has contended that the appeal is protected by exceptions prescribed in Para-10 of Circular dated 20/08/2018 (supra) as the assessment was reopened in the case of assessee consequent to search and seizure action carried by DGIT(Investigation), Mumbai on Bhanwarlal Jain group. We do not concur with the submissions made by ld. Departmental Representative. The DGIT (Investigation) is an internal agency of the Income Tax Department. The CBDT communication dated 20/08/2018 Para-10(e) refers to information received from external law enforcement agencies such as CBI/ED/DRI, etc. In our considered view the appeal by Department is not protected by CBDT communication(supra). Our view is fortified by the decision of Co-ordinate Bench in the case of ITO vs. Amarchand P. Shah, 73 ITR 588 (Mum-Trib).

Thus, without going into merits of the issue raised in the appeal, the present appeal by Revenue is dismissed on account of low tax effect.

In the result, appeal of the Revenue is dismissed.