DCIT 1(3)(2), MUMBAI vs. THE WEST COAST PAPER MILLS LTD, MUMBAI

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ITA 6588/MUM/2016Status: DisposedITAT Mumbai30 September 2019AY 2012-133 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 was below the monetary limit set by the CBDT. Consequently, the revenue's appeal was dismissed as not maintainable.

What were the facts?

The revenue filed an appeal against the CIT(A)'s order. The assessee argued that the tax effect was below the monetary limit prescribed by CBDT Circular No. 17/2019, making the appeal not maintainable.

What were the issues?

Whether the revenue's appeal is maintainable given the tax effect is below the CBDT's prescribed monetary limit.

Which sections of the Income-tax Act were involved?

Section 254(1),Section 253

AI-generated summary — verify with the full judgment below

Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER:

1. 1. This appeal by revenue under section 253 of Income Tax Act is directed against the order of ld. Commissioner of Income Tax (Appeals)-3, [CIT(A)], Mumbai dated 29.08.2016, which in turn arises from the assessment order passed under section 143(3) rws 147 dated 25.03.2015 for Assessment Year 2012-13.

2. At the outset of hearing, the ld. Authorized representative (AR) of the assessee submitted that the tax effect involved in the present appeal is only of Rs. 13,50,386/- which is below Rs. 50,00,000/- i.e. the monetary limit prescribed by CBDT Circular No.17/2019 dated 8th August 2019. Therefore, either the revenue should withdraw the present appeal or it may be dismissed. Mum 2016-M/s The West Coast Paper Mills Ltd. The ld AR for the assessee also furnished the working of the tax effect in the appeal, copy of which is supplied to the ld DR for the revenue.

3. On the other hand, the ld. Departmental Representative (DR) for the revenue after going through the grounds of appeal and the working of the tax effect furnished by the ld AR for the assessee, submitted that though the tax effect involved in the present appeal is less than the monetary limit of tax effect fixed by CBDT in a recent circular, however, the revenue may be given liberty to get the appeal revived in case at the later stage it is discovered that the ground of appeal is covered by any exception clause of CBDT Circular No. 3/2018 dated 11th July 2018 or the tax effect id more than Rs. 50 Lakhs.

4. Considering the submissions of both the ld. representatives of the parties, we find that tax effect involved in the present appeal is less than the monetary limit of Rs. 50,00,000/- fixed by CBDT Circular No. 17/2019 dated 8th August 2019, therefore, the appeal of revenue is dismissed being not maintainable. However, the revenue is given liberty to get the appeal revived in case, if it is discovered that the present appeal is covered by any exception clause of CBDT Circular No.3/2018 dated 11th July 2018.

5. In the result, appeal of the revenue is dismissed.

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