ITO 17 (1)(4), MUMBAI vs. LATE DINTA D. DOSHI (THROUGH LEGAL HEIR SHRI SANDEEP D. DOSHI), MUMBAI

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ITA 3126/MUM/2018Status: DisposedITAT Mumbai28 November 2019AY 2013-143 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The Tribunal dismissed the Revenue's appeal as withdrawn due to low tax effect, citing CBDT Circular No. 17/2019. Liberty was granted to the Revenue to move for recalling the order if it was later found that the appeal did not fall under any exceptions in the circular.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting an addition made by the AO on account of not allowing deduction of cost of improvement. The tax effect in the appeal was below the limit prescribed by CBDT Circular No. 17/2019 for filing appeals.

What were the issues?

Whether the Revenue's appeal should be dismissed on the grounds of low tax effect as per CBDT circulars, and whether the appeal falls under any exceptions provided in the circular.

Which sections of the Income-tax Act were involved?

Section 254

AI-generated summary — verify with the full judgment below

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

Before: SHRI RAJESH KUMAR & SHRI AMARJIT SINGH

For Appellant: Shri Bhavish Parekh, A.R
For Respondent: Smt Vidisha Kalra, D.R
Hearing: 07.11.2019Pronounced: 28.11.2019

Per Rajesh Kumar, Accountant Member:

1.

The present appeal has been preferred by the Revenue against the order dated 19.02.2018 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2013-14.

2. At the outset, it is noticed that the AO has made addition in capital gain for not allowing deduction of cost of improvement of Rs.60,29,445/-. The Ld. CIT(A) deleted the addition made by the AO. It is noticed that the CBDT recently has amended the CBDT Circular No. 3/2018 dated 11.07.2018 amounting vide

2 Late Dinta D. Doshi, (Through Legal Heir Shri Sandeep D Doshi) Circular No. 17/2019, F.No. 279/Misc.142/2007-ITJ(Pt.) dated 08.08.2019 increasing the limit for filing of appeal before Income Tax Appellate Tribunal i.e. ₹ 50 lacs in each of the case. We noted that earlier Circular No. 3 of 2018 was made applicable to pending appeals also and this clause of the circular remains unchanged even after the amendment. Admittedly, in this case tax effect is below prescribed limit for filing of appeal before the Tribunal by the Revenue i.e. ₹ 50 lacs.

2.

When this was confronted to the learned Sr. Departmental Representative, he could not point out that this appeal falls under any of the exception as provided in Circular No. 17 of 2019. Admittedly, the tax effect in this appeal of Revenue is much below the prescribed limit of filing appeal before the Tribunal i.e. ₹ 50 lacs as per CBDT circular No. 17 of 2019. In view of the above, this appeal of Revenue is dismissed as withdrawn in view of Circular No. 17 of 2019.

3.

Now, before us, the learned CIT Departmental Representative only requested that he want to verify whether this appeal falls under any of the explanation provided in CBDT Circular No. 3/2018. Here, we are of giving liberty to Revenue that in case, after passing of the order it comes to the notice of the Revenue that this appeal does not falls under any explanation of the CBDT by 3/18, the AO can move for recalling of the order within the prescribed time limit under section 254 of the Act. Hence, this appeal is dismissed as low tax effect covered by CBDT Circular No. 17/2019.

Order pronounced in the open court on 28.11.2019.

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