What did the Tribunal hold?

The Tribunal noted that the tax effect was below the monetary limit of Rs. 20 lakh as per CBDT Circular No. 3 of 2018. Therefore, the appeal filed by the Revenue was not maintainable.

The Revenue was aggrieved by an order of the First Appellate Authority that deleted an enhancement made in the annual letting value. The assessee pointed out that the tax effect in the appeal was below the prescribed monetary limit.

What were the issues?

Maintainability of the Revenue's appeal due to low tax effect below the prescribed monetary limit.

ACIT vs Sheba Properties Ltd. | ITAT Mumbai 2018

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

Before: Shri Joginder Singh, & Shri Rajesh Kumar

For Respondent: Shri Neil Philip-DR, Shri Pradeep Mitra

Hearing: 12/09/2018

आदेश / O R D E R Per Joginder Singh (Judicial Member) The Revenue is aggrieved by the impugned order dated 31/05/2016 of the Ld. First Appellate Authority, Mumbai, deleting the enhancement made in the annual letting value without appreciating that the Assessing Officer calculated ALV @ 8% of the market value.

During hearing of this appeal, at the outset, Shri Pradeep Mitra, ld. counsel for the assessee, pointed out that the tax effect in the present appeal, filed by the Revenue, is Rs.7,64,850/-, which is below prescribed monetary limit of Rs.20 lakh. The ld. DR, Shri Neil Philip, did not controvert the factual matrix.

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 monetary 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 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 the ld. representatives from both sides at the conclusion of the hearing on 12/09/2018.

ACIT - 2(3)(2), MUMBAI vs. SHEBA PROPERTIES LTD., MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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