ITO (EXEMPRION)-1(4), MUMBAI vs. KARNATAKA SANGHA, MUMBAI

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ITA 2207/MUM/2018Status: DisposedITAT Mumbai16 May 2019AY 2012-133 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 dismissed the Revenue's appeals, finding that the tax effects were below the threshold stipulated in CBDT Circular No. 3/2018. The Revenue was granted liberty to file a Miscellaneous Application if exceptions applied.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing exemption under Section 11 of the Income Tax Act for three assessment years. The assessee contended that the tax effect of the relief was below Rs. 20 lakhs, making the appeal not maintainable as per CBDT Circular No. 3/2018.

What were the issues?

Whether the appeals filed by the Revenue are maintainable before the ITAT given the tax effect below the prescribed monetary limit as per CBDT circular.

Which sections of the Income-tax Act were involved?

Section 11

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “H”, MUMBAI

Before: SHRI RAMIT KOCHAR (AM) & SHRI RAM LAL NEGI (JM)

For Appellant: Shri Bhupendra Shah (AR)
For Respondent: Shri Manoj Kumar Singh (DR), Shri Bhupendra Shah (AR)
Hearing: 16/05/2019Pronounced: 16/05/2019

O R D E R PER BENCH: These are the three appeals filed by the revenue against the common order dated 22.01.2018 passed by the Commissioner of Income Tax (Appeals)-7 (for short ‘the CIT(A), Mumbai, pertaining to the assessment years 2012-13, 2013-14 and 2014-15 respectively, whereby the Ld. CIT(A) has allowed the appeals filed by the appellants against the assessment orders passed u/s 143 (3) of the Income Tax Act, 1961 (for short the ‘Act’). Since, all the three appeals pertain to the same assessee for different assessment years, the same were clubbed, heard together and are being disposed of by this common and consolidated order for the sake of convenience. Assessment Years: 2012-13, 2013-14 & 2014-15

2.

In all the three cases, the AO had denied the exemption u/s 11 of the Act and treated the receipts/income from activities and interest income as business income of the assessee. In the first appeal, the Ld. CIT(A), set aside the findings of the AO and allowed exemption u/s 11 of the Act relying on the decision of the then CIT (A) (his predecessor) in assessee’s own case for the A.Y. 2010-11 3. At the outset, the Ld. counsel for the respondent/assessee pointed out that the tax effects of the relief granted by the Ld. Commissioner of Income Tax (Appeals) in all the three cases are below Rs. 20 lacs and as per the CBDT Circular No. 3/2018, F. No. 279/Misc.142/2007-ITJ (Pt) dated 11th July, 2018 issued by Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, the limit fixed by the CBDT for filing the appeal before the ITAT is 20 lacs. The Ld. counsel submitted calculation sheet to demonstrate that the tax effect in all the three cases are below Rs. 20 lacs. The calculation made by the assessee is reproduced as under:-

A.Y. Amt (Rs.) Tax @ 31% 2012-13 59,10,065/- (43,87,815/-+15,22,250/-) 18,32,120/- 2013-14 54,62,477/- (33,53,235/- + 21,09,242/-) 16,93,368/- 2014-15 54,34,711/- (32,42,898/-+21,91,813/-) 16,84,760/-

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