ACIT - 4(3)(1), MUMBAI vs. RIALTO EXIM PVT. LTD., MUMBAI

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ITA 6477/MUM/2016Status: DisposedITAT Mumbai08 September 2020AY 2012-132 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 held that the appeal filed by the Revenue was not maintainable due to the low tax effect. Consequently, the appeal was dismissed without delving into the merits of the deduction claim.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order allowing a deduction under Section 10AA of the Income Tax Act. The tax effect of the appeal was below the monetary limit prescribed by the CBDT for filing appeals before the ITAT.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT based on the tax effect, as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 10AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” Bench, Mumbai

For Respondent: Shri V. Vinod Kumar
Hearing: 08.09.2020Pronounced: 08.09.2020

O R D E R Per Shamim Yahya (AM) :-

This appeal by the Revenue is directed against the order of learned CIT(A) dated 5.8.2016 and pertains to assessment year 2012-13.

2.

The ground of appeal reads as under :- “On the facts and circumstances of the case ld. CIT(A) has erred in directing the Assessing Officer to allow the claim of deduction claimed by assessee of Rs. 66,86,557/- u/s. 10AA of the I.T. Act, 1961 in respect of profits arising out of trading activities, whereas the conditions laid down by this section have not been satisfied”.

3.

At the outset it is noted that the tax effect is below the limit of Rs. 50 lakhs fixed by the CBDT vide latest circular No. 17/2019 dated 8.8.2019 for filing the appeal before the ITAT. Hence, this appeal by the Revenue is not maintainable. Learned Departmental Representative could not dispute that the tax effect is below the said limit.

2 M/s. Rialto Exim Pvt. Ltd.

4.

Upon careful consideration, we find that as the tax effect is below the limit fixed by the CBDT for filing the appeals before the ITAT, this appeal by the Revenue is liable to be dismissed in limine.

5.

Accordingly, the appeal stands dismissed as such.

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