ITO 17 (1)(3), MUMBAI vs. M/S CHAITALIA BROTHERS, MUMBAI

This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals) – 55, Mumbai [in short ‘the CIT(A)’] dated 11/12/2018 for the assessment year 2009-10.

Ms. Kavita P. Kaushik, representing the Department stated that the total disputed amount in appeal is Rs1,20,488/-. Hence, the appeal suffers from low tax effect in the light of recent CBDT Circular No. 17/2019, dated 08-08- 2019.

Undisputedly, the tax effect involved in the appeal is less than the monetary limit prescribed by the Board for filing of appeals before the Tribunal by the Department. 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, 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.

In the result, appeal of the Revenue is dismissed.