DCIT 1(2)-1, MUMBAI vs. KATHREIN INDIA P. LTD, MUMBAI

ITA 3110/MUM/2017Status: DisposedITAT Mumbai21 January 2021AY 2010-114 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 Revenue's appeal due to low tax effect, as the tax involved was less than the monetary limit specified by the CBDT. Consequently, the assessee's cross-objections were also dismissed as infructuous.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order concerning an adjustment on account of management fees. The assessee argued that the appeal suffered from low tax effect as per CBDT circulars.

What were the issues?

Whether the Revenue's appeal should be dismissed on grounds of low tax effect as per CBDT circulars. Whether the assessee's cross-objections become infructuous if the Revenue's appeal is dismissed on this ground.

Which sections of the Income-tax Act were involved?

CBDT Circular No.17/2019, CBDT Circular No. 3 of 2018, CBDT Circular dated 20/08/2018

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “K”, MUMBAI

Before: SHRI VIKAS AWASTHY & SHRI N.K.PRADHAN

For Appellant: Shri Nitesh Joshi

For Respondent: Shri Sushil Kumar Mishra

Hearing: 21/01/2021Pronounced: 21/01/2021

आदेश/ ORDER

PER VIKAS AWASTHY,JM:

This appeal by the Revenue is directed against the order of Commissioner of Income Tax Appeals-56, Mumbai [in short ‘CIT(A)’] dated 24/01/2017 for the assessment year 2010-11. The assessee has filed cross objections in the aforesaid appeal of the Revenue.

Shri Nitesh Joshi, appearing on behalf of the assessee submitted at the outset that appeal filed by the Revenue suffers from low tax effect in the light of CBDT Circular No. Circular No.17/2019 dated 08/08/2019. The ld. Authorized Representative for the assessee pointed that the only issue raised in the appeal by Revenue is regarding deleting of adjustment on account of management fee Rs.69,42,392/-. The ld. Authorized Representative for the assessee stated at the Bar that if appeal by theRevenue is dismissed on account of low tax effect, the cross objections filed by assessee would become infructuous.

Shri Susheel Kumar Mishra, representing the Department fairly admitted that the tax effect involved in the appeal is less thanRs.50,00,000/-.

Both sides heard. Undisputedly, the tax effect involved in the appeal is less than Rs.50,00,000/- i.e. the monetary limit specified by the CBDT vide Circular No.17/2019 dated 08/08/2019(supra) for filing of appeals by the Revenue before the Tribunal. The CBDT vide circular dated 08-08-2019 (supra) has amended Para 3 of Circular No. 3 of 2018 dated 11-07-2018 thereby enhancing monetary limit of tax effect from Rs.20 Lakhs to Rs.50 Lakhs for filing of appeals by the Department before the Tribunal. Thus,

(A.Y.2010-11) C.O.NO.295/MUM/2018 without going into merits of the issue raised in the appeal, the present appeal by the Revenue is dismissed on account of low tax effect.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20/08/2018.

Since the appeal of the Revenue is dismissed on account of low tax effect, cross objections field by assessee have become infructuous and the same are dismissed, as such.

In the result, appeal by Revenue and cross objections by assessee are dismissed.

Order pronounced in the open court on Thursday, the 21st day of January, 2021.

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