DCIT CIR-9(2)(1), MUMBAI vs. CANBARA INDUSTRIES PVT LTD, MUMBAI

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ITA 1452/MUM/2019Status: DisposedITAT Mumbai29 September 2020AY 2010-113 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 on the grounds of maintainability and low tax effect, citing CBDT Circular No. 17/2019. The circular stipulates that no appeal should be filed by the Revenue where the tax effect is below Rs. 50 lakhs.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) concerning penalty levied under section 271(1)(c). The tax effect in the appeal was below Rs. 50 lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect and in light of CBDT Circular No. 17/2019.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: SHRI SHAMIM YAHYA & SHRI PAVAN KUMAR GADALE

Pronounced: 29/09/2020

28/09/2020 सुनवाई क� तार�ख / Date of Hearing घोषणा क� तार�ख /Date of Pronouncement 29/09/2020 आदेश / O R D E R PER PAVAN KUMAR GADALE - JM:

1.

The Revenue has filed an appeal against the order of CIT(A)-16, Mumbai passed u/s 271(1)(c) and 250 of the Income Tax Act, 1961.

2.

At the time of hearing, it was brought to the knowledge of the Bench the tax effect in the appeal is below Rs.50 lakhs, therefore covered by CBDT

Canbara Industries Pvt Ltd., Mumbai. - 2 - Circular No. 17/2019. We find as per the CBDT Circular dated 08.08.2019; no appeal shall be filed by the revenue before the Tribunal where the tax effect is below Rs. 50 lakhs. In the present case, the A.O has levied penalty u/s 271(1)(c) of the Act vide order dated 24-03-2017 of Rs.6,95,600/-, which is not disputed and the Ld CIT(A) has granted the relief. Further the circular of the CBDT is also applicable to the pending cases. Accordingly, we dismiss the revenue appeal on maintainability and low tax effect.

3.Incase, if the revenue is able to provide evidence that the case falls under any of the exceptions provided in the circular issued by the CBDT, then the revenue may prefer miscellaneous application for recalling of this order, if they so desire, in which circumstance this order shall be recalled by this Tribunal.

4.

In the result, appeal filed by the revenue is dismissed.

Canbara Industries Pvt Ltd., Mumbai. - 3 -

Order pronounced in the open court on 29.09.2020

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