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Income Tax Appellate Tribunal, MUMBAI BENCH “E”, MUMBAI
Before: SHRI MAHAVIR SINGH & SHRI RAJESH KUMAR
Per Rajesh Kumar, Accountant Member:
The above titled two appeals by the Revenue and the cross appeals by the assessee have been preferred against the order dated 26.03.2018 & 29.03.2016 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment years 2009-10 & 2010-11 respectively.
2 & 3411/M/2018 CO Nos.196 & 197/2019 M/s. Earth Builders 2. At the outset, it is noticed that the AO made addition of unexplained expenditure amounting to Rs.1,25,93,750/-. The CIT(A) deleted the addition of Rs.1,25,93,750/-. It is further noticed that the CBDT recently has amended the CBDT Circular No. 3/2018 dated 11.07.2018 amounting vide Circular No. 17/2019, F.No. 279/Misc.142/2007-ITJ(Pt.) dated 08.08.2019 increasing the limit for filing of appeal before Income Tax Appellate Tribunal i.e. Rs.50 lacs in each of the case. We noted that earlier Circular No. 3 of 2018 was made applicable to pending appeals also and this clause of the circular remains unchanged even after the amendment. Admittedly, in this case tax effect is below prescribed limit for filing of appeal before the Tribunal by the Revenue i.e. Rs.50 lacs.
When this was confronted to the learned Sr. Departmental Representative, he could not point out that this appeal falls under any of the exception as provided in Circular No. 17 of 2019. Admittedly, the tax effect in this appeal of Revenue is much below the prescribed limit of filing appeal before the Tribunal i.e. Rs.50 lacs as per CBDT circular No. 17 of 2019. In view of the above, this appeal of Revenue is dismissed as withdrawn in view of Circular No. 17 of 2019.
Now, before us, the learned CIT Departmental Representative only requested that he want to verify whether this appeal falls under any of the explanation provided in CBDT Circular No. 3/2018. Here, we are of giving liberty to Revenue that in case, after passing of the order it comes to the notice of the Revenue that this appeal does not falls under any explanation of the CBDT by 3/18, the AO can move for recalling
3 & 3411/M/2018 CO Nos.196 & 197/2019 M/s. Earth Builders of the order within the prescribed time limit under section 254 of the Act. Hence, this appeal is dismissed as low tax effect covered by CBDT Circular No. 17/2019.
In the result, both the appeals of the Revenue are dismissed.
CO Nos.196 & 197/2019
At the time of hearing the Ld. A.R. did not press the cross objections filed by the assessee. Hence, the same are dismissed.
In the result, the appeals of the Revenue as well as cross objections of the assessee are dismissed.
Order pronounced in the open court on 30.08.2019.