ITO 3(3)(3), MUMBAI vs. SKYLARK TRAVELS P. LTD, MUMBAI

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ITA 2596/MUM/2017Status: DisposedITAT Mumbai23 August 2018AY 2012-134 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 was below the prescribed monetary limit as per CBDT Circular No. 3 of 2018. Since the tax effect was not controverted by the Revenue and was below the limit, the appeal was deemed not maintainable.

What were the facts?

The Revenue appealed an order of the First Appellate Authority that deleted additions of Rs. 59,23,786/- made under Section 41(1) on account of unproved sundry creditors. The assessee pointed out that the tax effect of the appeal was below the prescribed monetary limit of Rs. 20 lakh.

What were the issues?

Whether the Revenue's appeal is 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 41(1)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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

Before: Shri Joginder Singh, & Shri Manoj Kumar Aggarwal

For Respondent: Shri A. Mohan- DR, Shri B. V. Jhaveri
Hearing: 23/08/2018

23/08/2018 सुनवाई क� तार�ख / Date of Hearing: 23/08/2018 आदेश क� तार�ख /Date of Order:

M/s Skylark Travels Pvt. Ltd. आदेश / O R D E R Per Joginder Singh(Judicial Member) The Revenue is aggrieved by the impugned order dated 28/12/2016 of the Ld. First Appellate Authority, Mumbai, deleting the additions under section 41(1) of the Income Tax Act, 1961 (hereinafter the Act), amounting to Rs.59,23,786/- on account of unproved sundry creditors relying upon the decision from Hon'ble Bombay High Court in the case of Solid Containers Pvt. Ltd. 308 ITR 417 (Bom.).

2.

During hearing of this appeal, at the outset, Shri B.V. Jhaveri, ld. counsel for the assessee, pointed out that the tax effect in the present appeal, filed by the Revenue, is below prescribed monetary limit of Rs.20 lakh. The ld. DR, Shri A.

Mohan, did not controvert the factual matrix, though he defended the addition made by the Ld. Assessing Officer.

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 present appeal is below prescribed limit of Rs.20 lakhs, 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 M/s Skylark Travels Pvt. Ltd. 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/-

It was explained that while giving effect to the order of the Ld. Commissioner of Income Tax (Appeal) dated 28/12/2016, the total income was revised and thus the tax effect was explained to be less than prescribed monetary limit. 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 appeal of the Revenue is not maintainable, therefore, dismissed.

Finally, the appeal of the Revenue is dismissed.

This Order was pronounced in the open court in the presence of Ld. representatives from both sides at the conclusion of hearing on 23/08/2018.

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