INCOME TAX OFFICER-15(2)(2), MUMBAI vs. M/S.NISHDISH INFRASTRUCTURE PRIVATE LIMITED, MUMBAI

Aforesaid appeal by revenue for Assessment Year [in short referred to as ‘AY’] 2010-11 contest the order of Ld. Commissioner of Income- Tax (Appeals)-24, Mumbai, [CIT(A)] Appeal No. CIT(A)-24/ITO- 15(2)(2)/IT-41/2016-17 dated 14/06/2017 qua deletion of addition of Rs.100 Lacs u/s 68 as made by Ld. AO on account of unexplained share application money.

The Ld. Authorized Representative for Assessee, at the outset, submitted that the tax effect of quantum under dispute is less than monetary limit of Rs.50 Lacs as prescribed by Central Board of Direct Taxes in its recently issued Circular No.17/2019 dated 08/08/2019 [F.No.279/Misc.142/2007-TTJ(Pt.) Government of India, Ministry of Finance, Department of Revenue] and therefore, the appeal is not maintainable.

The Ld. DR controverted the same by submitting that the additions were made on account of unexplained share application money pursuant to search action being carried out by DGIT (Investigation) in the case of Shri Pravin Kumar Jain and the factual matrix was covered by exception provided in CBDT Circular No. 23 of 2019 dated 06/09/2019 read with office memorandum dated 16/09/2019. 4. Upon perusal of case records, prima facie, it appears that the tax effect being contested by the revenue is less than prescribed limit of Rs.50 Lacs and the same is covered by recently issued low tax effect Circular No.17/2019 dated 08/08/2019 issued by Central Board of Direct Taxes [CBDT]. This recent circular further enhances the monetary limit fixed in earlier Circular No.3 of 2018 dated 11/07/2018 issued by CBDT as amended on 20/08/2018. Undisputedly, the factual matrix is not covered by any of the exceptions as provided in para-10 of Circular no. 3 of 2018 dated 11/07/2018. So far as the exceptions as provided in subsequent CBDT Circular No. 23 of 2019 dated 06/09/2019 read with office memorandum dated 16/09/2019 is concerned, upon perusal of the same, we find that the same applies only to cases involving bogus long term capital gains (LTCG) / Short Term Capital Loss (STCL) through

We have gone through the circular and find that the tax effect in dispute is below prescribed limit of Rs.50 Lacs and the assessee stood benefitted by the above circular issued by CBDT wherein the minimum monetary limit for filing the appeals before various appellate authorities have been fixed as under: - S. No. Appeals/ SLPs in Income-tax Monetary Limit (Rs.) matters 1 Before Appellate Tribunal 50.00,000 2 Before High Court 1,00.00,000 3 Before Supreme Court 2,00.00,000

At the same time, a liberty is given to revenue to seek recall of the appeal, if at a later stage, it is found that the matter is covered by any exceptions provided in any of the circular or in case the tax effect as agitated by revenue exceeds the prescribed monetary limit.

In the result, the appeal stands dismissed. Order pronounced in the open court on 28th November, 2019. (Mahavir Singh) (Manoj Kumar Aggarwal) "ाियक सद" / Judicial Member लेखा सद" / Accountant Member मुंबई Mumbai; िदनांक Dated : 28/11/2019 Sr.PS, Jaisy Varghese