DCIT CC 7(3), MUMBAI vs. BHAGWANTI R. VANIGOTA, MUMBAI

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ITA 3863/MUM/2017Status: DisposedITAT Mumbai28 August 2019AY 2008-093 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 revised monetary limit of Rs. 50,00,000/- for filing appeals as per CBDT Circular No. 17/2019. The Revenue was granted liberty to seek recall if exceptions applied.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2008-09. The amount in dispute was Rs. 66,65,580/-.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the tax effect is below the prescribed monetary limit for filing appeals before the ITAT.

Which sections of the Income-tax Act were involved?

Section 153A,Section 153C,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “B” MUMBAI

Before: SHRI MAHAVIR SINGH & SHRI N.K. PRADHAN

For Appellant: Mr. Neelkanth Khandelwal, AR
For Respondent: Mr. G.L.V. Prasad &, Mr. Rajeev Gubgotra, DRs, Mr. Neelkanth Khandelwal, AR
Hearing: 23/08/2019Pronounced: 28/08/2019

ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the Revenue. The relevant assessment year is 2008-09. The appeal is directed against the order of the Commissioner of Income Tax-48, Mumbai [in short ‘CIT(A)’] and arises out of the assessment completed u/s 153A r.w.s. 153C/143(3) of the Income Tax Act 1961, (the ‘Act’).

2.

Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the M/s Smt. Bhagwanti R. Vanigota Department before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation.

3.

CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purchase, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. At para 13 of the above Circular, it has been mentioned that: “13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.” 4. As a step towards further management of litigation, CBDT vide Circular No. 17/2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-.

M/s Smt. Bhagwanti R. Vanigota

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