What did the Tribunal hold?

The Tribunal held that the appeal suffered from low tax effect as it was below the monetary limit prescribed by the CBDT for filing appeals. Therefore, the appeal was dismissed without going into the merits of the case.

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for the assessment year 2010-11. The total tax effect involved in the appeal was Rs. 3,43,853/-.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed due to a low tax effect, as per CBDT circulars.

ITO vs M/S Riddhi Siddhi Corporation | ITAT Mumbai 2020

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

Before: SHRI VIKAS AWASTHY

आदेश/ ORDER

This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals) – 18, Mumbai [in short ‘the CIT(A)’] dated 28/02/2019 for the assessment year 2010-11.

2 Ms. Kavita P. Kaushik, representing the Department fairly admitted that the total tax effect involved in the present appeal is Rs.3,43,853/-. Hence, the appeal suffers from low tax effect in the light of CBDT Circular No. 17/2019, dated 08-08-2019.

Undisputedly, the tax effect in the present 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.

Order pronounced in the open Court on Wednesday the 16th day of September, 2020.

Sd./- (VIKAS AWASTHY) �या�यक सद�य/JUDICIAL MEMBER मुंबई/ Mumbai, �दनांक/Dated: 16/09/2020 Vm, Sr. PS(O/S)

��त�ल�प अ�े�षतCopy of the Order forwarded to :

ITO 19(3)(1), MUMBAI vs. M/S RIDDHI SIDDHI CORPORATION, MUMBAI

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