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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI C.N. PRASAD, HON’BLE
O R D E R PER C.N. PRASAD (JM) All these appeals are filed by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals)-25, Mumbai in Appeal No. CIT(A)-25/IT - 427, 428 & 429/16-17 dated 04.04.2019 for the Assessment Years 2010-11, 2011-12 and 2012-13.
The Revenue has raised the following common grounds in its appeals except for figures: -
2 4414 & 4415/MUM/2018 Sosardevi Ganeshlal Kachhara “(i). On the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the substantive addition of interest expenses for ₹.5,40,000/- u/s. 68 of the I.T. Act, 1961, claimed on the bogus & unexplained unsecured loans. (ii) The appellant craves leave to amend, modify and alter any grounds of appeal during the course of hearing of this case.”
At the time of hearing, Authorized Representative of the assessee submitted that tax effect on the issue in the present appeals are below ₹ 20 Lacs and in view of the CBDT Circular No. 3/2018 dated 11/07/2018 in F.No.279/Misc.142/2007-ITJ (Pt), the appeals of the Revenue are not maintainable.
Departmental Representative also agreed with the above submission of the Authorized Representative of the assessee.
We have heard the rival submissions and perused the grounds of appeal in all these appeals. From the grounds of appeal of the appeals filed by the Revenue, it is observed that the Revenue is contesting the addition made u/s. 68 of the Act by the Assessing Officer of ₹.5,40,000/-, ₹.5,85,000/- and ₹.6,30,000/- which was deleted by the Ld.CIT(A). Since the additions deleted by the Ld.CIT(A) were all less than ₹.10 Lakhs, we find that the tax effect in all these appeals is less than ₹.20 Lakhs and therefore the appeals of the Revenue are not maintainable on account of low tax effect in view of the above CBDT Circular. Hence these appeals are dismissed.
Order Pronounced in the Open Court on the 22nd July, 2019.