What did the Tribunal hold?

The Tribunal held that the revenue's appeal was not maintainable in view of the CBDT's low tax effect circular. The tax effect of the impugned addition was below the prescribed limit for appeals before the Appellate Tribunal.

The revenue's appeal contested certain relief provided to the assessee for AY 2011-12. The tax effect of the additions being contested by the revenue was less than Rs. 20 Lacs.

What were the issues?

Whether the revenue's appeal is maintainable before the ITAT when the tax effect of the additions is below the monetary limit prescribed by the CBDT circular.

ACIT vs India Value Fund Managers LLP | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: HON’BLE SHRI MAHAVIR SINGH, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Per Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year [in short referred to as ‘AY’] 2011-12 contest the order of Ld. Commissioner of Income- Tax (Appeals)-34, Mumbai, [in short referred to as ‘CIT(A)’], Appeal No. CIT(A)-34/JCIT-19(2)/IT-59/2014-15 dated 30/11/2017 qua certain relief provided to the assessee. 2. The Ld. Authorized Representative for Assessee [AR], at the outset, placed on record the tax effect of the additions being contested India Value Funds Managers LLP Assessment Year :2011-12 by the revenue and submitted that the revenue’s appeal is not maintainable in view of the recently issued low tax effect Circular No.03/2018 dated 11/07/2018 issued by Central Board of Direct Taxes [CBDT]. Our attention is drawn to the fact that the quantum of impugned addition is Rs.62 Lacs, the tax effect on which comes to less than Rs.20 Lacs. After perusal of the same, prima facie, it appears that the tax effect of the quantum additions as contested by the revenue is less than prescribed limit of Rs.20 Lacs and the same is covered by recently issued low tax effect Circular No.03/2018 dated 11/07/2018 issued by Central Board of Direct Taxes [CBDT]. The Ld. DR could not point out any exception as given in the CBDT circulars.

We have gone through the circular and find that the tax effect of quantum in dispute is below prescribed limit of Rs.20 Lacs and the assessee stood benefitted by the above circular issued by CBDT wherein the minimum monetary limit for filing the appeals before various appellate authorities have been fixed as under: - S. No. Appeals/ SLPs in Income-tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 20,00,000 2 Before High Court 50,00,000 3 Before Supreme Court 1,00,00,000 The aforesaid limits, as per para 13 of the circular applies to pending appeals also. In view of the admitted position, we dismiss the revenue’s appeal. 4. The revenue is free to move appropriate application to recall this order, if at a later stage, it is found that the matter is covered by any India Value Funds Managers LLP Assessment Year :2011-12 exceptions provided in the aforesaid circular or in case the tax effect of the quantum additions as agitated by revenue exceeds the prescribed monetary limit.

Resultantly, the appeal stands dismissed. Order pronounced in the open court on 18th March, 2019. Sd/- Sd/- /- (Mahavir Singh) (Manoj Kumar Aggarwal) �ाियक सद� / Judicial Member लेखा सद� / Accountant Member मुंबई Mumbai; िदनांक Dated : 18/03/2019 Sr.PS:-Jaisy Varghese आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ�/ The Appellant 1. ��थ�/ The Respondent 2. आयकरआयु�(अपील) / The CIT(A) 3. आयकरआयु�/ CIT– concerned 4. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण, मुंबई/ DR, ITAT, Mumbai 5. गाड�फाईल / Guard File 6. आदेशानुसार/ BY ORDER,

ASSISTANT COMMISSIONER OF INCOME TAX 22(1), MUMBAI vs. INDIA VALUE FUND MANAGERS LLP, MUMBAI

What did the Tribunal hold?

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