ASSISTANT COMMISSIONER OF INCOME TAX 23(1), MUMBAI vs. H. K. SAIGAL & OTHERS, MUMBAI

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ITA 783/MUM/2018Status: DisposedITAT Mumbai02 April 2019AY 2012-132 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 was less than Rs. 20 lakhs and the issue did not fall under any exceptions mentioned in the CBDT circular. Therefore, the Revenue was precluded from pursuing the appeal.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting the disallowance of interest expenses. The assessee contended that the tax effect was below the threshold limit for appeals as per CBDT Circular No. 3/2018.

What were the issues?

Whether the Revenue is precluded from filing an appeal due to the tax effect being below the prescribed limit as per CBDT circular.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “H” Bench, Mumbai

For Appellant: Shri Bhupendra Singh
For Respondent: Shri Manoj Kumar Singh
Hearing: 1.4.2019Pronounced: 2.4.2019

O R D E R Per Shamim Yahya (AM) :-

The appeal filed by the Revenue is directed against the order dated 6.10.2017 passed by the learned CIT(A)-32, Mumbai and it relates to A.Y. 2012-13. The Revenue is aggrieved by the decision of the learned CIT(A) in deleting the disallowance of interest expenses amounting to Rs 62,47,675/-.

2.

At the time of hearing, learned Counsel appearing for the assessee submitted that the tax effect involved in the quantum under dispute is less than Rs.20.00 lakhs and hence the Revenue is precluded from pursuing this appeal as per Circular No.3/2018 dated 11.07.2018 issued by CBDT.

3.

We heard learned DR and perused the record. Having regard to the fact that the quantum in dispute is Rs 62,47,675/- and hence tax effect involved therein is less than Rs 20 lakhs, there is merit in the contention of the assessee that the Revenue is precluded from pursuing this appeal as per the Circular of CBDT referred above. It is also not shown to us that the issue contested in this appeal falls under the ‘exceptions’ listed out in the circular. Accordingly, we dismiss the appeal in limine as unadmitted.

4.

In the result, the appeal filed by the Revenue is dismissed. Order has been pronounced in the Court on 2.4.2019.

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