What did the Tribunal hold?

The Tribunal found that the tax effect of the disputed additions was below the Rs. 20 Lacs limit specified in the CBDT circular. Therefore, the revenue's appeal was not maintainable.

The revenue filed an appeal contesting quantum additions made to the assessee's income. The assessee's representative argued that the tax effect of these additions was below the monetary limit prescribed by CBDT Circular No. 03/2018.

What were the issues?

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

ACIT vs Rajendrasingh Rathore Prop of… | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “D” 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’] 2010-11 contest the order of Ld. Commissioner of Income- Tax (Appeals)-3, Thane, [in short referred to as ‘CIT(A)’], Appeal No.10158-THN/16-17 dated 23/11/2017 on certain grounds of appeal

2. The Ld. Authorized Representative for Assessee [AR], at the outset, submitted that the tax effect of the quantum additions being contested by the revenue was less than the prescribed monetary limit Circular No.03/2018 dated 11/07/2018 issued by Central Board of Direct Taxes [CBDT]. 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.

3. 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 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.

5. Resultantly, the appeal stands dismissed. Order pronounced in the open court on 22nd March, 2019. Sd/- Sd/-/- (Mahavir Singh) (Manoj Kumar Aggarwal) �ाियक सद� / Judicial Member लेखा सद� / Accountant Member मुंबई Mumbai; िदनांक Dated : 22/03/2019 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,

ASST CIT PALGHAR CIR PALGHAR, PALGHAR vs. RAJENDRASINGH RATHORE PROP OF M/S.RAJENDRA ENTERPRISES & M/S.RAJSHREE TRANSPORT COMPANY, PALGHAR

What did the Tribunal hold?

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