ITO 8(3)(4), MUMBAI vs. VIJAY SYNTHETIC PRINTS P. LTD, MUMBAI

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ITA 8373/MUM/2011Status: DisposedITAT Mumbai27 August 2019AY 2006-073 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal noted that the tax effect was below the enhanced monetary limit of ₹ 50 lacs for filing appeals before the ITAT as per CBDT Circular No. 17/2019. The Departmental Representative could not point out any exceptions. Therefore, the appeal was dismissed as withdrawn.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2006-07. The appeal involved a quantum addition of ₹ 87,54,106/-. The tax effect in the appeal was ₹ 29,46,633/-, which was below the prescribed monetary limit for filing appeals.

What were the issues?

Whether the Revenue's appeal should be dismissed on account of low tax effect as per CBDT circulars, despite the quantum of addition.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

For Appellant: Shri Rajeev Gubgotra, DR
Hearing: 27.08.2019Pronounced: 27.08.2019

The Income Tax Officer, Ward 8(3)(4), Room No. 202, 2nd Floor, ……………. Applicant Aayakar Bhawan, Mumbai-20 PAN – AAACV0178K v/s M/s Vijay Synthetic Prints P. Ltd. Off Mehra Industrial Compound, Andheri Kurla Road, Sakinanka, Mumbai …………….Respondent अपीलार्थी की ओर े / Appellant by : Shri Rajeev Gubgotra, DR प्रत्यर्थी की ओर े / Respondent by : Shri Shekhar Gupta, AR ुनवाई की तारीख / Date of hearing: 27.08.2019 घोषणा की तारीख / Date of pronouncement : 27.08.2019 AadoSa / O R D E R महावीर स ुंह, न्याययक दस्य/ PER MAHAVIR SINGH, JM: This appeal of Revenue is arising out of the order of the Commissioner of Income Tax (Appeals)-18, Mumbai in 18/ITO-8(3)(4)/IT-337/2009-10 dated 22.09.2011. The Assessment was framed by the Income Tax Officer, Ward 8(3)-4, Mumbai (in short DCIT/ 2 | P a g e ITO/ AO) for AY 2006-07 vide dated 29.12.2008, under section 143(3) of the Income-tax Act, 1961 (hereinafter ‘the Act’).

2.

This appeal contains the quantum addition of ₹ 87,54,106/- i.e. on account of bad debts and disallowance of commission. The learned Counsel for the assessee stated that the tax effect in this appeal is ₹ 29,46,633/-, which is below the low tax effect as prescribed vide CBDT Circular No. 17/2019 vide F.No. 279/Misc.142/2007-ITJ(Pt.) dated 08.08.2019, wherein the monetary limit for filing of appeal before ITAT is enhanced to ₹ 50 lacs. We noted that vide this circular No. 17/2019 dated 08.08.2019 a amendment was made to CBDT Circular No. 3/2018 dated 11.07.2018 vide F.No. 279/Misc. 142/2007-ITJ (Pt) increasing the monetary limit for filing of appeal before Income Tax Appellate Tribunal i.e. ₹ 50 lacs in each of the case from the monetary limit of ₹ 20 lacs. 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. ₹ 50 lacs.

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