What did the Tribunal hold?

The Tribunal noted that the tax effect of the quantum additions contested by the Revenue was below the monetary limit prescribed by CBDT Circular No. 17/2019. Therefore, the appeal was not maintainable.

The Revenue filed an appeal against the order of the CIT(A) for Assessment Year 2007-08. The assessee did not appear for the hearing.

What were the issues?

Whether the appeal filed by the Revenue is maintainable considering the low tax effect as per the CBDT circulars.

ITO vs Goyam Jewels | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: HON’BLE SHRI SAKTIJIT DEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Appellant: Ms. K.Jothilakshmi Nayak–Ld. Sr. DR

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’] 2007-08 contest the order of Ld. Commissioner of Income-Tax (Appeals)-30, Mumbai, [in short referred to as ‘CIT(A)’], Appeal

M/s. Goyam Jewels Assessment Year-2007-08 No.30/19(1)(3)/10691/17-18 dated 09/07/2018 on certain grounds of appeal

2. None has appeared for assessee and no valid adjournment application is on record. However, the matter is proceeded with ex-parte qua the assessee keeping in view of the fact that the appeal is not maintainable in terms of low tax effect Circular No. 17/2019 dated 08/08/2019 recently issued by CBDT.

3. Upon perusal of quantum assessment order, it transpires that the tax effect of the quantum additions being contested by the revenue is below the threshold monetary limit of Rs.50 Lacs as prescribed by Central Board of Direct Taxes in its recently issued Circular No.17/2019 dated 08/08/2019 [F.No.279/Misc.142/2007-TTJ(Pt.) Government of India, Ministry of Finance, Department of Revenue] and therefore, the appeal is not maintainable. 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. The Ld. Departmental Representative is unable to point out any exceptions in the appeal as provided in para-10 of Circular no. 3 of 2018 dated 11/07/2018 or in any subsequent circular / instructions. The perusal of orders of lower authorities, prima facie, establish that the tax effect of quantum addition being contested by the revenue is below Rs.50 Lacs.

4. We have gone through the circular and find that the tax effect in the appeal is below prescribed limit of Rs.50 Lacs and the assessee stood benefitted by the above circular issued by CBDT wherein the minimum

M/s. Goyam Jewels Assessment Year-2007-08 monetary limit for filing the appeals before various appellate authorities have been fixed as under: - S. No. Appeals/ SLPs in Income-tax Monetary Limit (Rs.) matters 1 Before Appellate Tribunal 50.00,000 2 Before High Court 1,00.00,000 3 Before Supreme Court 2,00.00,000 The aforesaid limits, as per para 13 of the Circular no. 3 of 2018 dated 11/07/2018, applies to the pending appeals also. Keeping in view the same, we dismiss the appeal filed by the revenue.

At the same time, a liberty is granted to revenue to seek recall of the appeal, if at a later stage, it is found that the matter is covered by any exceptions provided in any of the circular or in case the tax effect of the additions in the appeal as agitated by revenue exceeds the prescribed monetary limit.

Resultantly, the appeal stands dismissed. Order pronounced in the open court on 09th October,2019. Sd/- Sd/- (Saktijit Dey) (Manoj Kumar Aggarwal) �ाियक सद� / Judicial Member लेखा सद� / Accountant Member मुंबई Mumbai; िदनांकDated : 09/10/2019 Sr.PS:-Jaisy Varghese

ITO 19 (1)(3), MUMBAI vs. GOYAM JEWELS, MUMBAI

What did the Tribunal hold?

What were the facts?

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