ITO 4(3)(4), MUMBAI vs. SHREE PETRO YARN (INDIA) P.LTD, MUMBAI

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ITA 3002/MUM/2017Status: DisposedITAT Mumbai03 February 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 held that the appeal of the Revenue was not maintainable due to the low tax effect, as per CBDT Circular No. 17/2019. Therefore, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting an addition made towards unexplained share application money. The tax effect on the issue was below ₹50 Lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable on grounds of low tax effect as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI

Before: SHRI C.N. PRASAD, HON’BLE & SHRI M. BALAGANESH, HON’BLE

For Appellant: Ms. Mitali Gopani
For Respondent: Shri V. Vijay Kumar
Hearing: 03.02.2020Pronounced: 03.02.2020

O R D E R PER C.N. PRASAD (JM) This appeal is filed by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals)-9, Mumbai [hereinafter in short “Ld.CIT(A)”] in Appeal No. CIT(A)-9/Cir-4/520/2015-16 dated 16.02.2017 for the Assessment Year 2010-11.

2.

Revenue has raised the following ground in its appeal: - “1. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in directing the Assessing Officer to delete the (A.Y: 2010-11) M/s. Shree Petro Yarn (India) Pvt. Ltd., addition made towards unexplained share application money of ₹.75,00,000/- u/s. 68 of the Act.”

3.

At the time of hearing, Authorized Representative of the assessee submitted that tax effect on the issue in the present appeal is ₹.23,17,500/- which is below ₹ 50 Lacs and in view of the CBDT Circular No. 17/2019 dated 08.08.2019 in F.No.279/Misc.142/2007-ITJ (Pt), the appeal of the Revenue is not maintainable.

4.

Departmental Representative also agreed with the above submission of the Authorized Representative of the assessee.

5.

We have heard the submissions and perused the grounds of appeal in this appeal. We find that the tax effect in this appeal is less than ₹.50 Lakhs and therefore the appeal of the Revenue is not maintainable on account of low tax effect in view of the CBDT Circular No. 17/2019 dated 08.08.2019. Hence this appeal is dismissed.

6.

In the result, appeal of the Revenue is dismissed.

Order Pronounced in the Open Court on the 03rd February, 2020

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