What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue had a tax effect below the monetary limit prescribed by the CBDT. Therefore, the appeal was dismissed as withdrawn.

The Revenue filed an appeal before the ITAT. The tax effect in this appeal was computed to be Rs. 1,88,758/-. The CBDT Circular No. 3/2018 specifies that appeals shall not be filed where the tax effect does not exceed Rs. 20,00,000/-.

What were the issues?

The primary issue was whether the appeal filed by the Revenue was maintainable given the tax effect was below the prescribed monetary limit by the CBDT.

DCIT vs Sitel India P.Ltd | ITAT Mumbai 2019

Income Tax Appellate Tribunal, MUMBAI BENCH “J” MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI N.K. PRADHAN

For Appellant: Mr. M.P. Lohiya &, Mr. Nikhil Tiwari, ARs

For Respondent: DR Assessee by : Mr. M.P. Lohiya &, Mr. Nikhil Tiwari, ARs

Hearing: 04/02/2019Pronounced: 30/04/2019

PER N.K. PRADHAN, A.M. 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

M/s Sitel India Pvt. Ltd. 2 against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not 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.

In the captioned appeal, the tax effect, if the Department appeal allowed is Rs.1,88,758/-. This is as per the computation sheet filed by the Ld. counsel of the assessee, which is not objected by the Ld. DR. 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.”

In view of the above, the present appeal filed by the Revenue, involving tax effect of less than Rs.20,00,000/- is dismissed as withdrawn. Order pronounced in the open Court on 30/04/2019. (SAKTIJIT DEY) ACCOUNTANT MEMBER Mumbai;

M/s Sitel India Pvt. Ltd. 3 Dated: 30/04/2019 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to :

The Appellant

The Respondent.

The CIT(A)-

CIT

DR, ITAT, Mumbai

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

DCIT 11(2)(1), MUMBAI vs. SITEL INDIA P.LTD, MUMBAI

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