DCIT -CC-8(1), MUMBAI vs. KJB TRADING CO., MUMBAI

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ITA 3619/MUM/2018Status: DisposedITAT Mumbai27 May 2019AY 2010-113 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 noted that the tax effect did not exceed the monetary limit of Rs.20,00,000/- as per CBDT Circular No. 3/2018. The learned DR agreed with this assessment.

What were the facts?

The appeal involved additions of Rs.48,37,622/- and Rs.96,752/-. The tax effect on these additions, before interest, was Rs.15,24,721/-.

What were the issues?

The primary issue was whether the appeal should be entertained given the tax effect was below the prescribed monetary limit for filing appeals before the ITAT.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “SMC” MUMBAI

Before: SHRI MAHAVIR SINGH & SHRI N.K. PRADHAN

For Appellant: Mr. M. Subramanian, AR
For Respondent: Mr. Chaitanya Anjaria, DR, Mr. M. Subramanian, AR
Hearing: 14/05/2019Pronounced: 27/05/2019

PER N.K. PRADHAN, AM The Central Board of Direct Taxes (CBDT) vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purchase, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not M/s KJB Trading 2 include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.

2.

In the captioned appeal, the amount in dispute is the addition of Rs.48,37,622/- on account of Client Code Modification (CCM) and Rs.96,752/- on account of commission expenses for CCM. The income tax payable on the above before interest is Rs.15,24,721/- and it does not exceed the monetary limit of Rs.20,00,000/-. At para 13 of the above Circular, it has been mentioned that:

“13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.”

3.

The Ld. DR agrees that the amount in dispute does not exceed the monetary limit of Rs.20,00,000/-.

4.

In the result, the appeal is dismissed as withdrawn. Order pronounced in the open Court on 27/05/2019. (MAHAVIR SINGH) ACCOUNTANT MEMBER

M/s KJB Trading 3 Mumbai; Dated: 27.05.2019 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to :

1.

The Appellant

2.

The Respondent.

3.

The CIT(A)-

4.

CIT

5.

DR, ITAT, Mumbai

6.

Guard file. BY ORDER, //// (Sr. Private Secretary) ITAT, Mumbai

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