ASSISTANT COMMISSIONER OF INCOME TAX 3(1)(2), MUMBAI vs. EMERGING STAR INVESTMENT PRIVATE LIMITED, MUMBAI

सुनवाई की तारीख/ : 04/12/2019 Date of Hearing घोषणा की तारीख / : 04/12/2019 Date of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year [in short referred to as ‘AY’] 2013-14 contest the order of Ld. Commissioner of Income- Tax (Appeals)-8 Mumbai, [in short referred to as ‘CIT(A)’], Appeal No. CIT(A)-8/IT-52/17-18 dated 17/09/2018 on certain grounds of appeal

2. The Ld. Authorized Representative, at the outset, made three-fold submissions i.e. (i) the appeal is not maintainable in terms of low tax Assessment Year :2013-14 effect Circular No. 23 of 2019 dated 06/09/2019 issued by CBDT ; (ii) the quantum additions against which rectification order u/s 154 was passed by Ld.AO has already been deleted by the Tribunal ; (iii) the amendment to Section 115BBE denying set-off of losses would apply only with effect from 01/04/2017. The Ld. DR relied upon the order of Ld.AO.

3. Upon careful consideration, it emerges that the assessee was saddled with additions of Rs.656 Lacs u/s 68 in an assessment framed u/s 143(3) on 14/03/2016. While framing the assessment, set-off of losses of Rs.45.80 Lacs was allowed to the assessee. The learned first appellate authority deleted the quantum additions vide order dated 04/09/2017. Upon further appeal by revenue, the Tribunal confirmed the order of first appellate authority vide order dated 04/09/2019.

4. In the meantime, Ld. AO rectified quantum assessment order u/s 154 vide order dated 31/05/2016 by withdrawing set-off of business losses of Rs.39.01 Lacs as allowed in original assessment order, invoking the provisions of Section 115BBE as amended by Finance Act, 2016 with effect from 01/04/2017. Aggrieved, the assessee assailed this order passed u/s 154 before learned CIT(A) vide impugned order dated 17/09/2018 who allowed the appeal in view of the fact that quantum additions were already deleted by its predecessor. Aggrieved, the revenue is under further appeal before us.

5. After going through the facts as enumerated by us in the preceding paragraphs, it would emerge that the appeal, at the threshold itself, would not be maintainable in terms of CBDT Circular No. 23 of 2019 dated 06/09/2019. We find that the tax effect of the issues being Assessment Year :2013-14 contested by the revenue is less than prescribed limit of Rs.50 Lacs and the same is covered by recently issued low tax effect Circular No.17/2019 dated 08/08/2019 issued by Central Board of Direct Taxes [CBDT]. This recent circular further enhances the monetary limit fixed in earlier Circular No.3 of 2018 dated 11/07/2018 issued by CBDT as amended on 20/08/2018. Therefore, the appeal would liable to be dismissed on this preliminary issue only. Hence, no useful purpose would be served to delve into other submissions made by Ld. AR.

6. In the result, the appeal stands dismissed. Order pronounced in the open court on 04th December, 2019. (C.N. Prasad) (Manoj Kumar Aggarwal) "ाियक सद" / Judicial Member लेखा सद" / Accountant Member मुंबई Mumbai; िदनांक Dated : 04/12/2019 Sr.PS, Jaisy Varghese आदेशकी"ितिलिपअ"ेिषत/Copy of the Order forwarded to : अपीलाथ"/ The Appellant 1. ""थ"/ The Respondent 2. आयकरआयु"(अपील) / The CIT(A) 3. आयकरआयु"/ CIT– concerned 4. िवभागीय"ितिनिध, आयकरअपीलीयअिधकरण, मुंबई/ DR, ITAT, Mumbai 5. गाड"फाईल / Guard File 6. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.