What did the Tribunal hold?

The Tribunal held that the appeal was covered by the CBDT circular regarding monetary limits for filing appeals. Therefore, the appeal was dismissed as withdrawn.

The Revenue filed an appeal before the ITAT. The assessee's counsel pointed out that the tax effect was below the monetary limit for departmental appeals as per a CBDT circular. The Revenue's representative could not provide any exceptions to this circular.

What were the issues?

Whether the Revenue's appeal should be dismissed due to the tax effect being below the prescribed monetary limit for departmental appeals as per CBDT circular.

DCIT vs Reliance Industries Ltd | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

For Appellant: Shri Nishant Samaiya, DR

AadoSa / O R D E R महावीर स ुंह, न्याययक दस्य/ PER MAHAVIR SINGH, JM: This appeal filed by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-57, Mumbai [in short CIT(A)], in appeal No. Nil, dated 04.12.2017.

The learned Counsel for the assessee stated that the tax effect in this appeal is ₹ 2,40,400/- which is below the amount referred in circular brought by 2 the Central Board of Direct Taxes (CBDT) vide circular F.No. 279/Misc. 142/2007-ITJ (Pt) dated 11.07.2018, wherein monetary limits and other conditions for filing of departmental appeal before the Tribunal has been revised and fixed at ₹ 20 lacs. He placed the copy of this circular on record.

In view of the above, we are of the view that the Revenue’s appeals are fully covered by CBDT circular No. 3 of 2018 and there is no exception brought out by the Revenue that these appeals falls under any of the exception as provided in Para 10 which reads as under: - “10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:

(a) Where the Constitutional validity of the provisions of an Act or Rule IS under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection m the case has been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/ bank accounts.”

When this was confronted to the learned Sr. Departmental Representative could not point out that this appeal falls under any of the exception as provided in Circular No. 3 of 2018 but he only requested that a liberty be given to Revenue for recalling of the order in case the AO found that these cases falls under any of the exceptions as provided in this circular.

DEPUTY COMMISSIONER OF INCOME TAX LARGE TAXPAYER UNIT-2, MUMBAI vs. RELIANCE INDUSTRIES LTD, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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