ACIT - 27 (1), NAVI MUMBAI vs. COMFORT FASHION, MUMBAI

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ITA 4978/MUM/2018Status: DisposedITAT Mumbai04 November 2019AY 2012-133 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The Tribunal dismissed the Revenue's appeal as withdrawn. This was based on the CBDT Circular No. 17/2019, which sets a monetary limit for appeals before the ITAT, and the tax effect in this case was below that limit.

What were the facts?

The Revenue filed an appeal against the deletion of penalty by the CIT(A). The original assessment involved additions made by the AO, leading to a penalty under Section 271(1)(c).

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the low tax effect, as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: SHRI MAHAVIR SINGH & SHRI M. BALAGANESH

For Appellant: Shri Kumar Padmapani Bora
Hearing: 04/11/2019Pronounced: 04/11/2019

PER MAHAVIR SINGH, JUDICIAL MEMBER

1.

This appeal of Revenue is arising out of the order of the Commissioner of Income Tax (Appeals)-24, Mumbai, [in short CIT(A)], in 25/630/ACIT-27(1)/2018-19 dated 24.05.2018. The Assessment was framed by the Asst. Commissioner of Income Tax-27(1), Mumbai (in short ITO/AO) for the A.Y. 2012-13 under section 271(1)(c) of the Income-tax Act, 1961 (hereinafter ‘the Act’).

2.

At the outset, it is noticed that the AO made certain additions and assessed the assessee’s income at ₹37,44,700/- u/s 143(3) of the Act. Thereafter, penalty of ₹57,846/- was imposed under Section 271(1)(c) of the Act. Aggrieved, assessee preferred appeal before the CIT(A), who deleted the same as unjustifiable. Now, aggrieved Revenue is in appeal before Tribunal. We observe that the tax effect in this appeal is ₹57,846/-, which is below the low tax effect as prescribed vide CBDT Circular No. 17/2019 vide F.No. 279/Misc.142/2007-ITJ(Pt.) dated 08.08.2019, wherein the monetary limit for filing of appeal before ITAT is enhanced to ₹ 50 lacs. We noted that vide this circular No. 17/2019 dated 08.08.2019 an amendment was made to CBDT Circular No. 3/2018 dated 11.07.2018 vide F.No. 279/Misc. 142/2007-ITJ(Pt) increasing the monetary limit for filing of appeal before Income Tax Appellate Tribunal i.e. ₹ 50 lacs in each of the case from the monetary limit of ₹ 20 lacs. 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.

3.

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. 3 of 2018, which are applicable to the present circular no. 17/2019. Now, before us, the learned CIT Departmental Representative could not point out whether this appeal falls under any of the exception as provided in CBDT Circular No. 3/2018. 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 M/s. Comfort Fashion the above, this appeal of Revenue is dismissed as withdrawn in view of Circular No. 17 of 2019.

4.

In the result, the appeal of the Revenue is dismissed.

Order pronounced in the open court on 4th November, 2019.

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