ADIT (IT) 2(2), MUMBAI vs. UPS SUPPLY CHAIN SOLUTIONS INC. USA, MUMBAI

Aforesaid appeal by revenue for Assessment Year (AY) 2006-07 contests the order of learned first appellate authority on certain grounds of appeal.

The Ld. AR, Shri Nitesh Joshi, at the outset, submitted that tax effect of quantum additions under dispute by revenue is below prescribed threshold limit of Rs.50 Lacs and therefore, the revenue’s appeal is not maintainable in terms of latest low tax effect CBDT Circular No. 17/2019 dated 08/08/2019 [F.No.279/Misc. 142/2007-TTJ(Pt.). In support, our attention has been drawn to the impugned order. The Ld. DR could not point out any exception to controvert the plea raised by Ld. AR.

After going through material on record, we find that the tax effect of quantum additions under dispute is below threshold monetary limit of Rs.50 Lacs and therefore, the appeal is not maintainable in terms of recently issued low tax effect Circular No. 17/2019 dated 08/08/2019 [F.No.279/Misc. 142/2007-TTJ(Pt.) issued by CBDT. This recent circular further enhances the monetary limit fixed in earlier Circular No.3 of 2018 dated 11/07/2018 issued by CBDT as amended on 20/08/2018. In view of the same, the appeals are not maintainable.

At the same time, a liberty is given to revenue to seek recall of the appeal, if at a later stage, it is found that the matter is covered by any exceptions provided in any of the circular or in case the tax effect in the appeal exceeds the prescribed monetary limit.

Resultantly, the appeal stands dismissed. Order pronounced in the open court on 03rd March, 2021. (Mahavir Singh) (Manoj Kumar Aggarwal) उपा"" / Vice President लेखा सद" / Accountant Member