What did the Tribunal hold?

The Tribunal held that the tax effect of the additions was below the prescribed monetary limit of Rs. 50 Lacs as per CBDT Circular No. 17/2019. Therefore, the appeal filed by the revenue was not maintainable.

The revenue filed an appeal before the ITAT contesting certain additions made to the assessee's income. The assessee's representative pointed out that the tax effect of these additions was below the monetary limit prescribed by the CBDT for filing appeals.

What were the issues?

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

DCIT vs Shri Bhavin Rameshchandra Patel | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

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

For Appellant: Ms. Kavita Kaushik –Ld. DR, Shri Ajay R. Singh – Ld.AR

For Respondent: Shri Ajay R. Singh – Ld.AR

Shri Bhavin Rameshchandra Patel Assessment Year-2014-15 आयकर अपीलीय अिधकरण “बी” �ायपीठ मुंबई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI �ी श��जीत दे,�ाियक सद� एवं �ी मनोज कुमारअ�वाल, लेखा सद� के सम�। BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा�रण वष� / Assessment Year:2014-15) DCIT–Circle-2, Kalyan Shri Bhavin Rameshchandra Patel 2nd Floor Mohan Plaza बनाम/ 12-A, Laxmi Sagar Apartment Khadakpada, Wayale Nagar Kansai Section Vs. Kalyan (W) -421 301. Ambernath-421 003. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AJPPP 5121 M (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Ms. Kavita Kaushik –Ld. DR ��थ�कीओरसे/Respondent by : Shri Ajay R. Singh – Ld.AR सुनवाईकीतारीख/ : 25/09/2019 Date of Hearing घोषणाकीतारीख / : 25/09/2019 Date of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member): - 1. Aforesaid appeal by revenue for Assessment Year [AY] 2014-15 contest the order of first appellate authority on certain grounds of appeal

2. When the appeal was called for hearing, the learned Authorized Representative for assessee, at the outset, drew our attention to the fact Shri Bhavin Rameshchandra Patel Assessment Year-2014-15 that the tax effect of the quantum additions being contested by the revenue in the appeal 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 appeals as provided in para-10 of Circular no. 3 of 2018 dated 11/07/2018. The perusal of computation as placed before us, prima facie, establishes that the tax effect of quantum addition being contested by the revenue in the appeal is below Rs.50 Lacs.

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 monetary limit for filing the appeals before various appellate authorities have been fixed as under: - S. No. Appeals/ SLPs in Income-tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50.00,000 2 Before High Court 1,00.00,000 3 Before Supreme Court 2,00.00,000 Shri Bhavin Rameshchandra Patel Assessment Year-2014-15 The aforesaid limits, as per para 13 of the Circular no. 3 of 2018 dated 11/07/2018, applies to the pending appeals also. In view of the admitted position, 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 the aforesaid 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 25th September,2019. Sd/- Sd/- (Saktijit Dey) (Manoj Kumar Aggarwal) �ाियक सद� / Judicial Member लेखा सद� / Accountant Member मुंबई Mumbai; िदनांकDated : 25/09/2019 Sr.PS:-Jaisy Varghese आदेश की �ितिलिप अ�ेि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,

DCIT, CIRCLE-2, KALYAN vs. SHRI BHAVIN RAMESHCHANDRA PATEL, MUMBAI

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