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Income Tax Appellate Tribunal, MUMBAI BENCHES “C”, MUMBAI
Before: SHRI B.R. BASKARAN (AM) & SHRI RAM LAL NEGI (JM)
O R D E R PER RAM LAL NEGI, JM This appeal has been filed by the revenue against the order dated 27.01.2017 passed by the Commissioner of Income Tax (Appeals) (for short ‘the CIT(A)-25, Mumbai, for the assessment year 2012-13, whereby the Ld. CIT(A) has allowed the appeal filed by the assessee against the assessment order passed by the AO u/s 143(3) of the Income Tax Act,1961 (for short ‘the Act’).
The revenue has challenged the impugned order passed by the Ld. CIT(A) on the following effective grounds:-
“On the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in granting exemption u/s 54 by ignoring the section 54 of the Act, wherein as per the section, there is failure on part of the assessee to purchase the flat within the time period as provided in the section in this case.
2 Assessment Year: 2012-13
2. On the facts and circumstances of the case and in law, the Ld. CIT (A) has erred granting exemption u/s 54 by treating the receipt of allotment letter by the assessee from the builder equivalent to the purchase of property, which is not correct.
3. On the facts and circumstances of the case and in law, the Ld. CIT (A) has erred by ignoring the fact that the issue of allotment letter does not confer any ownership right of the flat to the assessee whereas purchase of the flat through registration actually confers the right of ownership. 4. 5. On the facts and circumstances of the case and in law, the Ld. CIT (A) has erred by quoting the Hon’ble Supreme court decision (ITR) in the cae of M/s Fibre Boards (P) Ltd. Vs. CIT
(2015) 376 ITR 596 (SC) which is not applicable for section 54 of the I.T. Act.
At the outset, it transpired that in the aforesaid case, the tax effect of the relief granted by the Ld. Commissioner of Income Tax (Appeals) is below Rs.20 lacs, as per the limit fixed by the CBDT for filing the appeal before the ITAT vide CBDT Circular No. 3/2018, F. No. 279/Misc.142/2007-ITJ (Pt) dated 11th July, 2018 issued by Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India.
We have gone through the order of the Ld. Commissioner of Income Tax (Appeals) and the grounds of appeals. We find that the tax effect in the above referred appeal is less than Rs. 20 lacs.
The Ld. Departmental Representative (DR) fairly conceded that this appeal is not maintainable in light of the above said CBDT Circular. The Ld. DR also did not point out that this appeal falls in any of the exceptions carved out in the above said circular. Accordingly, we dismiss the aforesaid appeal filed by the Revenue as not maintainable.