DCIT CIRCLE-8(3)(2), MUMBAI vs. VALATION FINANCE & MARKETING P.LTD, MUMBAI

PDF · subscribers
ITA 6633/MUM/2018Status: DisposedITAT Mumbai17 February 2020AY 2014-153 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 found that the tax effect involved in the appeal was below the monetary limit prescribed by the CBDT for filing appeals. Consequently, the appeal was deemed not maintainable.

What were the facts?

The Revenue appealed against an order of the CIT(A) which deleted disallowances made under Section 36(1)(iii) and for casual labour expenses. The assessee argued that the tax effect was below the monetary limit for filing appeals to the Tribunal.

What were the issues?

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

Which sections of the Income-tax Act were involved?

Section 36(1)(iii),Section 253,Section 254(1)

AI-generated summary — verify with the full judgment below

DCIT-8(3)(2), M/s Valation Finance and Marketing Pvt. Ltd., 4th Floor, Room No. 615, Vs Aayakar Bhavan, M.K. Road, Sadhana House, 570 Pandurang Mumbai-400020. Pudhkar Marg, Worli, Mumbai-400018 PAN : AABCV1310Q (Appellant) (Respondent) Appellant by : Mrs. Samatha Mullamudi (Sr. DR) Respondent by : Shri Sachin Romani (AR) Date of Hearing : 17/02/2020 Date of Pronouncement : 17/02/2020 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER:

1. 1. This appeal by revenue under section 253 of Income Tax Act is directed against the order of ld. Commissioner of Income Tax (Appeals)-14, [CIT(A)], Mumbai dated 23.07.2018 for Assessment Year 2014-15. The ld CIT(A) while passing the order deleted the disallowances under section 36(1)(iii) of Rs. 1,15,67,494/- and disallowances of causal labour expenses of Rs. 2,33,720/- .

2. At the outset of hearing, the ld. Authorized representative (AR) of the assessee submitted that the tax effect involved in the present appeal is below the monetary limit of Rs.50,00,000/- prescribed by CBDT for Mum 2018-M/s Valation Finance and Marketing Pvt. Ltd. filing appeal before Tribunal, in its Circular No.17/2019 dated 8th August 2019. The ld. AR of the assessee also furnished the working of tax effect of Rs. 38,28,904/-, on the additions deleted by ld CIT(A), copy of which was supplied to ld. Sr. DR for the revenue.

3.

On the other hand, the ld. Departmental Representative (DR) for the revenue after going through the working of the tax agreed that the tax effect involved in the present appeal is less than the monetary limit of tax effect fixed by CBDT in a recent circular.

4.

Considering the submissions of both the ld. representatives of the parties, we find that tax effect involved in the present appeal is less than the monetary limit of Rs. 50,00,000/- fixed by CBDT Circular No. 17/2019 dated 8th August 2019, therefore, the appeal of revenue is dismissed being not maintainable. In the result, appeal of the revenue is dismissed due to tax effect being not maintainable.

5.

In the result, appeal of the revenue is dismissed.

More judgments on Section 36(1)(iii)

All 3,665 judgments and leading authorities on Section 36(1)(iii) →

Recent GST High Court judgments

Search GST case law →