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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SRI MAHAVIR SINGH
Aayakr ApIla saM./ (inaQa-arNa baYa- / Assessment Year 2014-15) The Asst. Commissioner of SJS Trading & Holding Co. Income Tax, Circle 2(3)(2), Pvt. Ltd. State Bank Bldg. Annex, 1 st Aayakar Bhavan, Room Vs. No.552, M.K. road, Mumbai- Floor, Bank Street Fort, 400 020 Mumbai-400 023 .. (p`%yaqaaI- / Respondent) (ApIlaaqaI- / Appellant) स्थायी लेखा िं./PAN No. AAACS6381H अपीलाथी की ओर े / Appellant by : Shri BS Bist, DR प्रत्यथी की ओर े / Respondent by : Shri Devershi Mehta, AR ु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-11/2016-17 vide dated 09.01.2018. The Assessment was framed by the Asst. Commissioner of Income Tax, circle 2(3)(2) Mumbai (in short ‘ACIT/ AO’) for the A.Y. 2014-15 vide dated 07.12.2016 under section 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’).
At the outset, it is seen that the relief allowed by CIT(A) on disallowance of expenses amounting to ₹ 30,92,972/- and relief allowed on disallowance by AO under section 14A read with rule 8D of the Income Tax Rules, 1962 (hereinafter the ‘Rules’) at ₹ 14,85,072/- and further allowance of loss of ₹ 10,57,301/-. The total quantum addition deleted by CIT(A) is ₹ 56,35,345/- and the tax on the same will be Rs. 16,90,604/-. 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
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.”
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.
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[- .