DCIT- CC -7(3), MUMBAI vs. MANJULABEN B. PATEL, MUMBAI

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ITA 2945/MUM/2018Status: DisposedITAT Mumbai27 August 2019AY 2008-093 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal. This was based on a CBDT circular enhancing the monetary limit for appeals to the ITAT to Rs. 50 lacs, and the tax effect in this case being below that limit.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order which partly allowed the assessee's appeal against an assessment order. The CIT(A) had deleted an addition of Rs. 1,00,00,000/- made by the Assessing Officer.

What were the issues?

The primary issue was whether the CIT(A) was justified in deleting the addition made under Section 68. However, the appeal was dismissed on procedural grounds related to monetary limits.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “D”, MUMBAI

Before: SHRI M. BALAGANESH (AM) & SHRI RAM LAL NEGI (JM)

For Respondent: Shri J. Sarvanan (DR)
Hearing: 27/08/2019Pronounced: 27/08/2019

O R D E R

PER RAM LAL NEGI, JM

1.

1. This appeal has been filed by the revenue against the order dated 27.03.2018 passed by the Commissioner of Income Tax (Appeals)-49 (for short ‘the CIT(A), Mumbai, for the assessment year 2008-09, whereby the Ld. CIT(A) has partly allowed the appeal filed by the assessee against the assessment order passed u/s 147A r.w.s 143 (3) of the Income Tax Act, 1961 (for short the ‘Act’).

2.

Aggrieved by the order of Ld. CIT (Appeals), the revenue has preferred this appeal before the Tribunal on the following effective grounds:-

1.

“Whether on the facts and in the circumstances of the case and in law, the CIT (A) was justified in deleting the addition of Rs. 1,00,00,000/- made by the Assessing Officer u/s 68 of the IT Act, 1961, as bogus loan arranged through a proven shell company controlled and Assessment Year: 2008-09 operated by an entry provider by accepting superficial submission of the assessee and without going in to creditworthiness of the Lender and genuineness of transaction?”

3.

This case was fixed for today for final hearing. However, when the case was called out for hearing, none appeared on behalf of the respondent/assessee. The Ld. Departmental Representative fairly (DR) pointed out that the tax effect of the relief granted by the Ld. Commissioner of Income Tax (Appeals) in the present case is below Rs. 50 lacs and as per Circular No. 17 of 2019 dated 08.08.2019, issued by the Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, Government of India, the present appeal is not maintainable.

4.

We have gone through the impugned order passed by the Ld. CIT(A) and the grounds of appeal raised by the revenue. Vide the aforesaid Circular the CBDT has enhanced the monetary limit for filing appeals before the ITAT from the existing limit of Rs. 20 lacs to Rs. 50 lacs. Since, the tax effect in the present appeal is less than Rs. 50 lacs, this appeal is not maintainable. Hence, we dismiss the appeal filed by the Revenue as not maintainable/withdrawn.

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