DCIT CENTRAL CIRCLE 8(3), MUMBAI vs. M/S ROSY BLUE (INDIA) PVT. LTD, MUMBAI

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ITA 1456/MUM/2019Status: DisposedITAT Mumbai10 December 2020AY 2013-143 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 below the monetary limit for filing appeals before the ITAT as per CBDT Circular No. 17/2019. The assessee was given liberty to point out exceptions via a miscellaneous application.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee argued that the tax effect in the appeal was below the monetary limit prescribed by CBDT circulars for filing appeals. The Departmental Representative conceded that the tax effect was below the limit.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the ITAT given the tax effect is below the prescribed monetary limit by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “J” MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI N.K. PRADHAN

For Appellant: Mr. Nitesh Joshi, AR
For Respondent: Mr. Manpreet Duggal, DR, Mr. Nitesh Joshi, AR
Hearing: 10/12/2020Pronounced: 10/12/2020

ORDER PER N.K. PRADHAN, A.M.

The captioned appeal filed by the Revenue is directed against the order passed by the Commissioner of Income (Appeals)-57, Mumbai [in short ‘CIT(A)’] and arise out of assessment completed u/s 143(3) r.w.s. 144C(3) of the Income Tax Act, 1961 (the Act).

Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 2. dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the Revenue before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation.

3.

CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purchase, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.

At para 13 of the said Circular, it has been mentioned that:

“13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.”

4.

As a step towards further management of litigation, CBDT vide Circular No. 17/2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-.

5.

In the instant appeal, as per the calculation filed by the Ld. counsel the tax effect is Rs.44,47,598/-. Therefore, the Ld. counsel for the assessee submits that the appeal filed by the Revenue be dismissed.

6.

Before us, the Ld. Departmental Representative (DR) fairly agrees that the tax effect herein is below the monetary limit of Rs.50,00,000/- fixed by the above Circular for filing of appeals before the ITAT. However, it is pleaded by him that in case of exceptions to the above Circular, the appellant may be allowed to bring it to the notice of the Tribunal. Considering the submission, we make it clear that the appellant shall be at liberty to point out the exceptions to which the above Circular may not apply, by filing miscellaneous application.

7.

In view of the CBDT Circular No. 17/2019, this appeal involving tax effect of less than Rs.50,00,000/- is dismissed as withdrawn.

Order pronounced in the open Court on 10/12/2020.

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