INCOME TAX OFFICER 15(1)(2), MUMBAI vs. ENERGIC REAL ESTATE PRIVATE LIMITED, MUMBAI

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ITA 5999/MUM/2017Status: DisposedITAT Mumbai27 August 2018AY 2008-094 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 noted that the tax effect in both appeals was below the prescribed monetary limit as per CBDT Circular No. 3 of 2018. Therefore, the appeals were not maintainable.

What were the facts?

The Revenue filed appeals against the orders of the First Appellate Authority withdrawing additions made under Section 68. The assessee pointed out that the tax effect in these appeals was below the prescribed monetary limit of Rs. 20 lakh.

What were the issues?

Whether appeals filed by the Revenue are maintainable when the tax effect is below the prescribed monetary limit set by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, MUMBAI BENCHES, ‘SMC’ MUMBAI

Before: Shri Joginder Singh, & Shri Rajesh Kumar

Hearing: 27/08/2018

आदेश / O R D E R Per Joginder Singh (Judicial Member) These two appeals are by the Revenue against the impugned orders both dated 14/06/2017 of the Ld. First Appellate Authority, Mumbai, withdrawing the addition made under section 68 of the Income Tax Act, 1961 (hereinafter the Act), ignoring the decision in the case of Navodaya Castle Pvt. Ltd. (2015) 56 taxman.com 18 (Supreme Court).

2.

During hearing of these appeals, at the outset, Shri Dharan V. Gandhi, ld. counsel for the assessee, pointed out that the tax effect in the present appeals, filed by the Revenue, is below prescribed monetary limit of Rs.20 lakh.

1.

The ld. DR, Shri S.K. Bepari, did not controvert the factual matrix that the tax effect in both the appeals is below prescribed monetary limit.

2.1. We have considered the rival submissions and perused the material available on record. In view of the above, it is noted that the tax effect in the respective appeals are below prescribed limit of Rs.20 lakh, vide instruction/Circular No.3 of 2018, issued by CBDT (F No.279/Misc./142/ 2007-ITJ(PT) dated 11/07/2018. As per the circular, wherein, the Department was advised/directed by the Board not to file appeal in the cases where the tax effect does not exceed the following monetary limit:-

Sl. Appeals in Income –tax matters Monetary Limit (in Rs.) No. 1. Before ITAT 20,00,000/- 2. U/s 260 A before Hon’ble High 50,00,000/- Court 3. Before Hon’ble Supreme Court 1,00,00,000/-

In view of the above instruction, since, the tax effect is less than Rs.20,00,000/- (not controverted by Ld. DR also), consequently, the appeals of the Revenue are not maintainable, therefore, dismissed.

Finally, the appeals of the Revenue are dismissed.

This order was pronounced in the open court in the presence of the ld. representatives from both sides at the conclusion of the hearing on 27/08/2018.

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