DCIT-3(3)(2), MUMBAI vs. M/S WHITE PEARL HOTELS & INVESTMENTS PVT LTD., MUMBAI

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ITA 3856/MUM/2019Status: DisposedITAT Mumbai11 February 2021AY 2015-163 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 found that the tax effect of the disputed additions was below the monetary threshold. Therefore, the appeal was not maintainable as per the CBDT circular.

What were the facts?

The Revenue appealed against the deletion of a disallowance made under Section 14A. The assessee contended that the tax effect of the additions was below the threshold limit prescribed by CBDT Circular No. 17/2019.

What were the issues?

Whether the Revenue's appeal is maintainable when the tax effect of the disputed additions falls below the prescribed monetary limit as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAVISH SOOD, JM

For Appellant: Ms. Pramila Rathi-Ld.AR
For Respondent: Shri T.S. Khalsa- Ld. Sr.AR

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year [in short referred to as ‘AY’] 2015-16 contest the order of Ld. Commissioner of Income-Tax (Appeals)-8, Mumbai [in short referred to as ‘CIT(A)’], Appeal No.CIT(A)-8/IT-20/17-18, dated 25/03/2019 which has deleted certain disallowance of Rs.83.94 Lacs u/s 14A. The Ld. Counsel for Assessee, Ms. Pramila Rathi, at the 2. outset, submitted that tax effect of quantum additions being M/s. White Pearl Hotels & Investments Pvt. Ltd. Assessment Year: 2015-16 contested by the 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.). The Ld. DR could not point out any exception to controvert the plea raised by Ld. AR.

3.

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 appeal is not maintainable.

4.

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.

5.

Resultantly, the appeal stands dismissed. Order pronounced on 11th February, 2021.

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