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

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ITA 768/MUM/2017Status: DisposedITAT Mumbai24 October 2018AY 2012-133 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 revenue's appeal was not maintainable as the tax effect of the disputed additions was below the prescribed monetary limit as per CBDT Circular No. 03/2018.

What were the facts?

The revenue filed an appeal against the order of the first appellate authority for AY 2012-13. The assessee had returned a loss, and the assessment order resulted in a reduced loss after certain disallowances.

What were the issues?

Whether the revenue's appeal is maintainable in view of the low tax effect as per CBDT circular. Whether the tax effect of the disputed additions falls below the prescribed monetary limit for filing appeals.

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

Per Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year [AY] 2012-13 contest order of first appellate authority dated 07/11/2016 on various grounds of appeal

2. The assessee being resident corporate entity has been assessed u/s 143(3) on 07/11/2014 at loss of Rs.134.78 Lacs after certain Nirmal Bang Commodities Pvt.Ltd. Assessment Year-2012-13 disallowance as against returned loss of Rs.298.44 Lacs e-filed by the assessee on 09/01/2013. The first appellate authority, upon further appeal, has provided certain relief to the assessee, against which the revenue is under appeal before us with various grounds of appeal

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, 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, Shri Padma Ram, has controverted the same by 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 Nirmal Bang Commodities Pvt.Ltd. Assessment Year-2012-13 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. Resultantly, the appeal stand dismissed. Order pronounced in the open court on 24th October, 2018.

Sd/- Sd/- (Mahavir Singh) (Manoj Kumar Aggarwal) �ाियक सद� / Judicial Member लेखा सद� / Accountant Member मुंबई Mumbai; िदनांक Dated : 24/0/2018 Sr.PS:-Thirumalesh/JV, Sr.PS आदेशकी�ितिलिपअ�ेि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.

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