DCIT - 14 (3)(2), MUMBAI vs. SUNDARAM MULTIPAP LTD., MUMBAI

Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER:

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 only Rs. 28,37,362/-, which is below the monetary limit of Rs.50,00,000/- prescribed by CBDT in its Circular No.17/2019 dated 8th August 2019. The ld. AR of the assessee further submits that admittedly the tax effect involved in the present appeal is less than Rs. 50,00,000/-. Therefore, the present appeal is squarely covered by the CBDT Circular No. 17/2019 dated 8th August 2019 and is liable to be dismissed. The ld. AR for the assessee also Mum 2018-M/s Sundaram Multipap Limited. filed working of tax effect of Rs. 28,37,362/- , copy of which was supplied to ld DR for the revenue. The ld. AR of the assessee also submitted that tax effect of Rs. 28,37,362/- is otherwise mentioned in para-10 of Form 36 (Appeal Form).

3. On the other hand, the ld. Departmental Representative (DR) for the revenue after going through the working of the tax fairly 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. We have considered the submissions of the parties and perused the order of the lower authorities. The assessing officer while passing the assessment order made disallowance under section 14A of Rs. 91,82,400/-. On appeal before ld CIT(A) the assessee stated that no exempt income was earned during the year thus, no disallowances under section14A is warranted. The ld CIT(A) after considering the submission of the assessee that no exempt income was earned by assessee during the relevant period, thus, no disallowance under section 14A is attracted and deleted the entire disallowance.

5. 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. Even on merit, we find that when no exempt income was ITA No. 7201 Mum 2018-M/s Sundaram Multipap Limited. earned by assessee, no disallowance under section 14A for the year under consideration is warranted.