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Income Tax Appellate Tribunal, “K” BENCH, MUMBAI
Before: HON’BLE SHRI SAKTIJIT DEY, JM & SHRI HON’BLE MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member): - 1. Aforesaid appeal by revenue for Assessment Year [AY] 2011-12 contest the order of Ld. Commissioner of Income-Tax (Appeals)-56, Mumbai [CIT(A)], Appeal No. CIT(A)-56/DCIT–C.C.2(3)/2016-17/151-G dated 22/02/2017 on certain grounds of appeal. None is present for assessee and no valid adjournment application is on record. Therefore, we M/s. Golden Wings Private Limited Assessment Year-2011-12 proceed to dispose-off the appeal ex-parte qua the assessee in view of the fact that the matter, prima-facie, appears to be covered by recent low tax effect circular issued by CBDT.
Upon perusal of assessment order dated 29/05/2015 framed by Ld. Assessing Officer u/s 143(3) r.w.s. 144C of the Act, it transpires that the assessee was saddled with certain Transfer Pricing Adjustment of Rs.36.43 Lacs. The Ld. first appellate authority has deleted the same, against which the revenue is in further appeal before us.
We find that the tax effect of the quantum addition being contested by the revenue is below threshold limit of Rs.20 Lacs and the appeal is not maintainable in view of the recently issued low tax effect Circular No.03/2018 dated 11/07/2018 issued by Central Board of Direct Taxes [CBDT]. The Ld. DR could not point out any exception as given in the CBDT circular.
We have gone through the circular and find that the tax effect of quantum in dispute is below prescribed limit of Rs.20 Lacs and the assessee stood benefitted by the above circular issued by CBDT wherein the minimum monetary limit for filing the appeals before various appellate authorities have been fixed as under: - S. No. Appeals/ SLPs in Income-tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 20,00,000 2 Before High Court 50,00,000 3 Before Supreme Court 1,00,00,000 M/s. Golden Wings Private Limited Assessment Year-2011-12 The aforesaid limits, as per para 13 of the circular applies to pending appeals also. In view of the admitted position, we dismiss the revenue’s appeal.
Nevertheless, the revenue is free to move appropriate application to recall this order, if at a later stage, it is found that the matter is covered by any exceptions provided in the aforesaid circular or in case the tax effect of the quantum additions as agitated by revenue exceeds the prescribed monetary limit.