DCIT 9(3)(1), MUMBAI vs. DANIA ORO JEWELLERY P.LTD, MUMBAI

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ITA 4941/MUM/2017Status: DisposedITAT Mumbai10 December 2019AY 2011-123 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 without going into the merits of the case. This decision was based on the low tax effect, which fell below the monetary limit prescribed by the CBDT circular for filing appeals.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order. The assessee argued that the appeal should be dismissed due to low tax effect. The Revenue conceded that the tax effect was below the threshold.

What were the issues?

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

AI-generated summary — verify with the full judgment below

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

Before: SHRI R.C.SHARMA & SHRI VIKAS AWASTHY

For Respondent: Smt. Aarti Vissangi & Shri. A.Prahudesai
Hearing: 10/12/2019Pronounced: 10/12/2019

This appeal by the Revenue is directed against order of the Commissioner of Income Tax (Appeals)-55, (in short ‘the CIT(A) ), Mumbai dated 27/02/2017 for the assessment year 2011-12.

2.

Smt. Aarti Vissangi appearing on behalf of the assessee submitted at the outset that appeal of the Revenue is liable to be dismissed on account of low tax effect in the light of recent CBDT Circular No.17/2019 dated 08/08/2019.

(A.Y.2011-12) 3. Ms.Nillu Jaggi, representing the Department also fairly admitted that in the present appeal by the Department tax effect is less than Rs.50 Lakhs.

4.

The tax effect involved in this appeals is less than the monetary limit prescribed by the recent CBDT Circular No. 17/2019, dated 08- 08-2019 for filing of appeals before the Tribunal by the Department. The CBDT vide circular dated 08-08-2019 (supra) has amended Para 3 of Circular No. 3 of 2018 dated 11-07-2018 thereby enhancing monetary limit of tax effect from Rs.20 Lakhs to Rs.50 Lakhs for filing of appeals by the Department before the Tribunal. Thus, without going into merits of the issue raised in the appeal, the present appeal by the Revenue is dismissed on account of low tax effect.

5.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20/08/2018.

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

Order pronounced in the open court after hearing of the appeal on Tuesday , the 10th day of December, 2019.

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