DCIT CEN CIR 2(3), MUMBAI vs. GOLDEN WINGS P.LTD, MUMBAI

PDF · subscribers
ITA 3772/MUM/2017Status: DisposedITAT Mumbai17 July 2019AY 2011-123 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 held that the tax effect of the disputed addition was below the threshold limit of Rs. 20 Lacs as per CBDT Circular No. 03/2018. Therefore, the appeal was not maintainable.

What were the facts?

The revenue filed an appeal against the deletion of a transfer pricing adjustment of Rs. 36.43 Lacs by the CIT(A). The assessee was absent for the hearing.

What were the issues?

Whether the revenue's appeal is maintainable when the tax effect is below the prescribed monetary limit set by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “K” BENCH, MUMBAI

Before: HON’BLE SHRI SAKTIJIT DEY, JM & SHRI HON’BLE MANOJ KUMAR AGGARWAL, AM

For Respondent: Shri Rignesh K Das –Ld. DR
Hearing: 17/07/2019Pronounced: 17/07/2019

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.

2.

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.

3.

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.

4.

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.

5.

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.

More judgments on Section 144C

All 3,699 judgments and leading authorities on Section 144C →

Recent GST High Court judgments

Search GST case law →