DCIT-1(1)(2), MUMBAI vs. M/S FORBES & CO. LTD., MUMBAI

The dispute in the present appeal is confined to the relief granted by the learned Commissioner (Appeals) on the issue of disallowance made under section 14A r/w rule 8D by the Assessing Officer.

At the outset, the leaned Counsel for the assessee submitted that the tax effect on the amount disputed by the Revenue in the present appeal is below the monetary limit of ` 50 lakh. Hence, she submitted that the appeal is not maintainable in view of the Central Board of Direct Taxes (CBDT) Circular no. no.17 of 2019, dated 8th August 2019. Further, she submitted, the appeal is not protected by any of the exceptions provided.

The learned Departmental Representative agreed that the tax effect on the amount disputed by the Revenue is below the monetary limit of `.50 lakh.

Having considered rival submissions and perused the material on record, we find from Col. No.10 of the appeal memo filed by the Revenue in Form no.36, the tax effect on the amount disputed by the revenue in the present appeal is ` 29,24,376, which is below the revised monetary limit of ` 50 lakh as per CBDT Circular no.17/2019, dated 8th August 2019. It also stands clarified by the CBDT that the revised monetary limit of ` 50 lakh as per the aforesaid CBDT Circular would also apply to all pending appeals. There is nothing on record to show that the appeal is protected by any of the exceptions provided in the circular. In view of the aforesaid, Revenue’s appeal deserves to be dismissed as withdrawn.

In the result, Revenue’s appeal is dismissed. Order pronounced in the open court on 25.11.2020