ACIT 4(2)(1), MUMBAI vs. NIRMAL BANG SECURITIES P.LTD, MUMBAI

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ITA 766/MUM/2017Status: DisposedITAT Mumbai24 October 2018AY 2013-144 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal, finding that the tax effect of the disputed additions was below the monetary limit prescribed by CBDT Circular No. 03/2018. The assessee's appeal was also dismissed as the assessee did not wish to pursue it due to small amounts.

What were the facts?

The Revenue filed an appeal against the relief granted by the CIT(A) to the assessee. The assessee's returned income was Rs. 103.30 Lacs, and the assessment was made at Rs. 910.95 Lacs.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable in light of the low tax effect circular. The secondary issue was the assessee's willingness to pursue its appeal.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

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

Hearing: 24/10/2018

Heard together (2 matters)

I.T.A. No.766/Mum/2017
I.T.A. No.776/Mum/2017

Read from the judgment's own cause title. This page is filed under one of them.

सुनवाई की तारीख/ : 11/10/2018 Date of Hearing 24/10/2018 घोषणा की तारीख / : Date of Pronouncement आदेश / O R D E R Nirmal Bang Securities Private Limited. Assessment Year-2013-14 Per Manoj Kumar Aggarwal (Accountant Member)

1.

These are cross appeals for AY 2013-14 which contest order of Ld. Commissioner of Income-Tax (Appeals)-9 [CIT(A)], Mumbai, Appeal No.CIT(A)-9/Cir.4/392/2015-16 dated 07/11/2016 on different grounds of appeal

2. The assessee being resident corporate entity has been assessed u/s 143(3) on 20/10/2015 at Rs.910.95 Lacs after certain disallowance as against returned income of Rs.103.30 Lacs e-filed by the assessee on 30/09/2013. The first appellate authority, upon further appeal, has provided certain relief to the assessee. Against the same the revenue is under appeal before us. The perusal of grounds of appeal reveals that the revenue is under appeal against aggregate relief of Rs.34.69 Lacs [Rs.22.27 Lacs + Rs.12.18 Lacs + Rs.0.22 Lacs] as provided by Ld. CIT(A).

3. The Ld. Auhtorized Representative for Assessee [AR], Shri Anant N.Pai, at the outset, 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]. The working of the tax effect has been placed on record. After perusal of the same, we find 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, Shri Padma Ram, has controverted the same by Nirmal Bang Securities Private Limited. Assessment Year-2013-14 submitting that necessary instructions / certificate, in this regard, would be required from higher authorities.

4. 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 Monetary Limit (Rs.) matters 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.

5. So far as the contentions raised by Ld. DR is concerned, we find that aforesaid circular does not envisage obtaining of any certificate from any authorities, in any manner. Nevertheless, 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.

6. The Ld. AR has further submitted that in view of dismissal of revenue’s appeal as aforesaid, the assessee is not interested to pursue the issues raised in his appeal due to smallness of the amounts. In view of the said submission, the assessee’s appeal stands dismissed in limine.

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