INCOME TAX OFFICER 25(1)(1), MUMBAI vs. SANDEEP S DAGARIA, MUMBAI

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ITA 6565/MUM/2018Status: DisposedITAT Mumbai10 December 2019AY 2013-143 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 noted that the tax effect in the appeal was less than the revised monetary limit of Rs. 50,00,000/- prescribed by the CBDT for filing appeals. As there were no exceptions applicable, the appeal was not maintainable.

What were the facts?

The Revenue filed an appeal against the order of the CIT(A) for AY 2009-10. The assessee did not appear for the hearing. The Revenue's counsel conceded that the tax effect in the appeal was below the revised monetary limit for filing appeals.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given that the tax effect is below the prescribed monetary limit set by the CBDT.

Which sections of the Income-tax Act were involved?

Section 144,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”, BENCH

Before: SHRI R.C.SHARMA, AM & SHRI VIKAS AWASTHY, JM

For Respondent: Shri Kumar Padmapani Bora (Sr.DR)
Hearing: 09/12/2019Pronounced: 10/12/2019

Revenue by Shri Kumar Padmapani Bora (Sr.DR) Assessee by None Date of Hearing 09/12/2019 Date of Pronouncement 10/12/2019 आदेश / O R D E R PER: R.C. SHARMA, A.M. This is the appeal filed by the revenue against the order of the ld. CIT(A)-45, Mumbai dated 12/07/2018 for the A.Y. 2009-10 in the matter of order passed U/s 144 r.w.s. 147 of the Income Tax Act, 1961 (in short, the Act).

2.

No body appeared on behalf of the assessee in spite of service of notice, therefore, the Bench decided to dispose off the appeal after hearing the ld. DR and considering the material placed on record.

3.

At the outset, the ld DR has fairly agreed that the tax effect in the appeal filed by the revenue is less than Rs. 50.00 lacs.

ITO Vs Sandeep S Dagaria 4. We have considered the rival contentions and carefully gone through the orders of the authorities below and found that the tax effect in this appeal is not exceeding the monetary limit as revised by the CBDT vide Circular dated 08.08.2019 for the purpose of filing of appeal by the department before the Income Tax Appellate Tribunal from Rs. 20,00,000/- to Rs. 50,00,000/-. For ready reference, we reproduce the CBDT Circular No. 17 of 2019 dated 08.08.2019 as under:-

Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation.

Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation.

Appeals/SLPs in Income- Monetary Limit Monetary Limit tax matters (Rs.) (previous (Rs.) limit) (Revised Limit) Before Appellate Tribunal 20,00,000 50,00,000 Before High Court 50,00,000 1,00,00,000 Before Supreme Court 1,00,00,000 2,00,00,000 • The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. • Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year

ITO Vs Sandeep S Dagaria and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. • In case where a composite order/ judgment involves more than one assessee, each assessee shall be dealt with separately.”

5.

It is also relevant to mention here that this appeal is not covered by any of the exceptions mentioned in the said circular so as to not dismissing the same on the ground of low tax effect. Accordingly, the appeal of the department is not maintainable being monetary limit is less than/not exceeding Rs. 50,00,000/-.

6.

In the result, appeal of the revenue is dismissed.

Order pronounced in the open court on 10th December, 2019.

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