What did the Tribunal hold?

The Tribunal held that the tax effect in the Revenue's appeal was below the revised monetary limit of ₹50 lakh. Therefore, the Revenue's appeal was not maintainable and was dismissed.

The Revenue filed an appeal before the ITAT, and the assessee filed a cross-objection. The assessee argued that the tax effect of the disputed amount was below the revised monetary limit for appeals to the Tribunal as per CBDT circulars.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal considering the revised monetary limits prescribed by CBDT circulars for appeals.

DCIT vs Mega Management Servises P.Ltd | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI MANOJ KUMAR AGGARWAL

For Appellant: Shri Navnit Chaudhary

For Respondent: Shri Samatha Mullamudi, Shri Navnit Chaudhary

Date of Hearing – 30.09.2019 Date of Order – 25.10.2019 2 Mega Management Services Pvt. Ltd. O R D E R PER SAKTIJIT DEY. J.M.

Aforesaid appeal by the Revenue and cross objection by the assessee arise out of order dated 19th September 2014, passed by the learned Commissioner of Income Tax (Appeals)–17, Mumbai, for the assessment year 2010–11.

At the time of hearing, learned Counsel for the assessee submitted that the tax effect on the amount disputed by the Revenue is below the revised monetary limit of ` 50 lakh applicable to appeals before the Tribunal, as per CBDT Circular no.17 of 2019, dated 8th August 2019. Further, he submitted, none of the exceptions provided in CBDT Circular no.3 of 2018, dated 11th July 2018 read with circular F. no.279/Misc./142/2007–ITJ–(Pt) dated 20.08.2018 would apply to Revenue’s appeal. Thus, he submitted, Revenue’s appeal being covered under the aforesaid Circulars is not maintainable.

The learned Departmental Representative agreed that the tax effect on the amount disputed by the Revenue is below the monetary limit of `.50 lakh.

Having considered rival submissions and perused the material on record, we are of the view that the tax effect on the amount disputed

3 Mega Management Services Pvt. Ltd. by the Revenue in the present appeal is below the revised monetary limit of ` 50 lakh as per CBDT Circular no.17/2019, dated 8th August 2019, r/w CBDT Circular no.3/2018, dated 11th July 2018. It also stands clarified by the CBDT that the revised monetary limit of ` 50 lakh as per the aforesaid CBDT Circulars would also apply to all pending appeals. In view of the aforesaid, Revenue’s appeal deserves to be dismissed. However, the Revenue is given liberty to seek recall of this order if, at a later point of time, it is found that the appeal is protected by any of the exceptions provided in the Circulars referred to above.

In view of our decision in Revenue’s appeal, as aforesaid, assessee’s cross objection has become infructuous, hence, dismissed.

In the result, both, the appeal and the cross objection are dismissed.

Order pronounced in the open Court on 25.10.2019

DCIT 10(2)(2), MUMBAI vs. MEGA MANAGEMENT SERVISES P.LTD, MUMBAI

What did the Tribunal hold?

What were the facts?

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