What did the Tribunal hold?

The Tribunal held that the tax effect was below the revised monetary limit of ₹50 lakh as per CBDT Circular No. 17/2019 and Circular No. 3/2018. Therefore, the Revenue's appeal was not maintainable.

The Revenue appealed against an order of the CIT(A) for AY 2011-12. 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?

The primary issue was whether the Revenue's appeal was maintainable before the Tribunal given the tax effect and the prevailing CBDT circulars on monetary limits for appeals.

ITO vs Bombay Gow Rakshak Mandali | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI MANOJ KUMAR AGGARWAL

For Appellant: Ms. Urvi Mehta

For Respondent: Shri Samatha Mullamudi, Ms. Urvi Mehta

Aforesaid appeal by the Revenue is directed against the order dated 20th march 2018, passed by the learned Commissioner of Income Tax (Appeals)–1, Mumbai, pertaining to the assessment year 2011–12.

2 M/s. Bombay Gow Rakshak Mandali

At the time of hearing, the learned Authorised Representative 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, she 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 20th August 2018 would apply to Revenue’s appeal. Thus, she 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 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

3 M/s. Bombay Gow Rakshak Mandali 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 the result, Revenue’s appeal is dismissed in terms indicated above. Order pronounced in the open Court on 11.10.2019

ITO (E) I(1), MUMBAI vs. BOMBAY GOW RAKSHAK MANDALI, MUMBAI

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