DEPUTY COMMISSIONER OF INCOME TAX - CENTRAL CIRCLE 6(2), MUMBAI vs. SAMIRA REALITY PROJECTS PRIVATE LIMITED, MUMBAI

The revenue has challenged the impugned order passed by the Ld. CIT(A) on the following grounds:- 1. “Whether on the basis of facts and circumstances of the case the learned CIT (Appeals) erred in restricting the addition made of Rs. 43,47,425/- U/s 69 on account of on-money amounting to Rs. 21,73,712/-?

Whether on the basis of facts and circumstances of the case the learned CIT (Appeals) erred in deleting the addition of Rs. 65,520/- on account of penal interest on short deduction/no deduction of TDS? Assessment Year: 2011-12

Whether on the basis of facts and circumstances of the case the learned CIT (Appeals) erred in allowing the assessee’s claim of set-off of brought forward losses of Rs. 1,16,74,748/-?

Whether on the basis of facts and circumstances of the case the learned CIT (Appeals) while deleting the additions, erred in following the juri ictional High Court Judgment in the case of Alcargo Global Logistics Ltd., ignoring the fact that department is before Hon’ble Supreme Court on the issue?”

At the outset, the Ld. counsel for the respondent/assessee pointed out that the tax effect of the relief granted by the Ld. Commissioner of Income Tax (Appeals) is below Rs. 50 lacs and as per Circular No.17 of 2019 dated 08.08.2019 issued by the Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, Government of India, the CBDT has revised the monetary limit for filing appeals before the ITAT from the existing limit of Rs. 20 lacs to Rs. 50 lacs. In the light of the aforesaid facts, the Ld. counsel submitted that this appeal is not maintainable and liable to be dismissed. The Ld. counsel furnished calculation sheet, as per which, the tax effect in this case is Rs. 42,99,420/-.

The Ld. Departmental Representative (DR) admitted that this appeal is not maintainable in light of the aforesaid Circular issued by the CBDT, however, submitted that the department may be given liberty to file miscellaneous application in case it is found that the case falls under any of the exceptions provided in the Circular or otherwise maintainable.

We have gone through the impugned order passed by the Ld. Commissioner of Income Tax (Appeals) and the grounds of appeals. As pointed out by the Ld. counsel, the tax effect in this appeal is less than Rs. 50 lacs. Accordingly, we dismiss the aforesaid appeal filed by the Revenue as not maintainable/withdrawn. However, in case, it is found that the case falls under any of the exceptions provided in the Circular or otherwise maintainable, then Assessment Year: 2011-12 the revenue is at liberty to file miscellaneous application for recalling the order of the Tribunal for deciding the appeal afresh on merits.. In the result, appeal filed by the revenue for assessment year 2011-2012 is dismissed. Order pronounced in the open court on 20th December, 2019. (SHAMIM YAHYA) JUDICIAL MEMBER म ुंबई Mumbai; दिन ुंक Dated: 20/12/2019 Alindra, PS