ACIT 2(3)-2, MUMBAI vs. SHAKUN GASES P. LTD, MUMBAI

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ITA 2067/MUM/2018Status: DisposedITAT Mumbai01 November 2018AY 2013-143 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 appeal was covered by CBDT Circular No. 3 of 2018, which sets monetary limits for appeals. Since the tax effect was below the prescribed limit and no exceptions applied, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) which granted relief on a penalty of Rs. 17,64,888/-. The net tax effect of the appeal was less than Rs. 20 lacs.

What were the issues?

Whether the Revenue's appeal should be entertained when the tax effect is below the monetary limit specified by CBDT circular, and no exceptions apply.

Which sections of the Income-tax Act were involved?

Section 221,Section 140A(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: SRI MAHAVIR SINGH

For Appellant: Shri BS Bist, DR
Hearing: 01.11.2018Pronounced: 01.11.2018

Aayakr ApIla saM./ (inaQa-arNa baYa- / Assessment Year 2013-14) The Asst. Commissioner of Shakun Gases Pvt. Ltd. Income Tax, Circle-2(3)92), 2nd Floor, Afzal Mansion Aayakar Bhavan, Room No. Burjorji Bharucha Marg, Vs. 552, 5th Floor, M.K. Road, Fort, Mumbai-400 054 Mumbai-400 020 .. (p`%yaqaaI- / Respondent) (ApIlaaqaI- / Appellant) स्थायी लेखा िं./PAN No. AACCS2608D अपीलाथी की ओर े / Appellant by : Shri BS Bist, DR प्रत्यथी की ओर े / Respondent by : None ुनवाई की तारीख / Date of hearing: 01.11.2018 घोषणा की तारीख / Date of pronouncement : 01.11.2018 AadoSa / O R D E R महावीर स िंह, न्याययक दस्य/ PER MAHAVIR SINGH, JM:

This appeal by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-6, Mumbai [in short CIT(A)], in appeal No. CIT(A)-6/IT-224/7/2016-17 vide dated 03.01.2018. The penalty order under section 221 r.w.s. 140A(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’) by Asst. Commissioner Income Tax, Circle 2(3)(2) for A.Y. 2013-14 vide dated 15.02.2017.

2.

At the outset, it is seen that the relief allowed by CIT(A) on account of penalty will be Rs.17,64,888/-. Hence, net tax effect in this appeal of revenue on the disputed additions made by AO and deleted by CIT (A), is less than Rs. 20 lacs and covered by the CBDT Circular No. 03 of 2018 dated 11.07.2018

3.

In view of the above, we are of the view that the Revenue’s appeals are fully covered by CBDT circular No. 3 of 2018 and there is no exception brought out by the Revenue that these appeals falls under any of the exception as provided in Para 10 which reads as under: -

““10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:

(a) Where the Constitutional validity of the provisions of an Act or Rule IS under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection m the case has been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/ bank accounts.”

4.

When this was confronted to the learned Sr. Departmental Representative Shri BS Bist, he could not point out that this appeal falls under any of the exception as provided in Circular No. 3 of 2018.

Admittedly, the tax effect in this appeal of Revenue is much below the prescribed limit of filing appeal before the Tribunal i.e. ₹ 20 lacs as per CBDT circular No. 3 of 2018. In view of the above, this appeal of Revenue is dismissed as withdrawn in view of Circular No 3 of 2018.

5.

In the result, the appeal of Revenue is dismissed.

Order pronounced in the open court on 01-11-2018. AadoSa kI GaaoYaNaa Kulao mao idnaMk 01-11-2018kao kI ga[- .

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