JOINT COMMISSIONER OF INCOME TAX (OSD) CIRCLE 10(2)(1), MUMBAI vs. J.P. INFRA(MUMBAI) P.LTD, MUMBAI

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ITA 1703/MUM/2018Status: DisposedITAT Mumbai25 March 2019AY 2014-153 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The Tribunal dismissed the appeal as withdrawn/not pressed, citing the CBDT Circular No. 3/2018 which revised monetary limits for departmental appeals. The Revenue did not provide material to show the appeal was an exception to the circular.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) concerning disallowance under Section 14A read with Rule 8D for AY 2014-15. The tax effect in dispute was below the monetary limit specified in a subsequent CBDT circular.

What were the issues?

Whether the appeal filed by the Revenue is maintainable in light of the revised monetary limits for appeals stipulated by CBDT Circular No. 3/2018.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “F”, MUMBAI

Before: SHRI G.S. PANNU & SHRI PAWAN SINGH

For Appellant: Shri Rajiv Gubgotra
For Respondent: Shri Jiger Mehta
Hearing: 25/03/2019Pronounced: 25/03/2019

The captioned appeal filed by the Revenue pertaining to Assessment Year 2014-15 is directed against an order passed by CIT(A)-17, Mumbai dated 29.12.2017, which in turn arises out of an order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 (in short ‘the Act’) dated 16.12.2016.

2.

In this appeal, Revenue has raised the following Grounds of appeal :-

“1. On the facts and in the circumstances of the case and in the law, is the Ld CIT(A) correct in restricting the disallowance made u/s 14A read with Rule 8D of M/s. J.P. Infra (Mumbai) Pvt. Ltd. the Income-tax Rules, 1962 amounting to Rs.49,69,188/- to the exempt income earned by the assessee in spite of the extant circular of CBDT bearing No. 05/2014 dated 11.02.2014 wherein the Board has clarified that provisions of section 14A of the Act are applicable in the cases even where the assessee in a particular year has not earned any exempt income, which per se means the disallowance u/s 14A of the Income-tax Act, 1961 cannot be restricted to the exempt income.

2. The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the A.O be restored.”

3.

The CBDT vide Circular No. 3/2018 dated 11.07.2018 has revised the monetary limits for filing of appeals by the Department before the Tribunal with retrospective effect. The tax effect in dispute in the captioned appeal is stated to be below the monetary limit of Rs.20.00 lacs specified in the CBDT Circular dated 11.07.2018 (supra).

4.

In this background, the Ld. Departmental Representative appearing for the Revenue was required to state his position; he has not referred to any material which would show that the captioned appeal is protected by any of the exceptions provided in para 10 of the circular (supra).

5.

Without going into the merit of the issues raised in the captioned appeal, this appeal is deemed to be withdrawn/not pressed as it’s filing is not in consonance with the CBDT Circular dated 11.07.2018 (supra). Before parting, we clarify here that if on a later date requisite material is brought to show that the appeal is protected by any of the exceptions prescribed in para 10 of the Circular (supra), then the Revenue shall be at liberty to approach the Tribunal for re-institution of appeal. The Tribunal shall consider such application in accordance with the extant law.

M/s. J.P. Infra (Mumbai) Pvt. Ltd.

6.

In conclusion, by applying the CBDT Circular dated 11.07.2018 (supra), the captioned appeal of the Revenue is dismissed as withdrawn/not pressed.

Above decision was pronounced in the open court in the presence of both the parties at the conclusion of hearing on 25.03.2019.

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