DCIT 4(1)(2), MUMBAI vs. CREATIVE LABELS P.LTD, MUMBAI

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ITA 6786/MUM/2017Status: DisposedITAT Mumbai10 August 2018AY 2014-1510 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 CBDT circular allowing withdrawal of appeals with tax effect below the prescribed limit also applies to pending appeals. Since the Revenue could not establish any exceptions, the appeals were dismissed.

What were the facts?

The Revenue filed multiple appeals before the ITAT. During the hearing, it was pointed out that the tax effect in these appeals was below the monetary limit prescribed by the CBDT for filing departmental appeals.

What were the issues?

Whether pending appeals with tax effect below the prescribed CBDT limit should be dismissed or pressed on merits.

Which sections of the Income-tax Act were involved?

Not specified

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

For Appellant: Shri DG Pansari, DR

Heard together (20 matters)

ITA No. 6809/Mum/2017
ITA No. 6752/Mum/2016
ITA No. 6753/Mum/2016
ITA No. 6755/Mum/2016
ITA No. 6761/Mum/2017
ITA No. 6802/Mum/2017
ITA No. 6806/Mum/2017
ITA No. 7476/Mum/2017
ITA No. 6453/Mum/2017
ITA No. 6494/Mum/2017
ITA No. 6563/Mum/2017
ITA No. 6565/Mum/2017
ITA No. 6572/Mum/2017
ITA No. 6576/Mum/2017
ITA No. 6594/Mum/2017
ITA No. 6630/Mum/2017
ITA No. 6786/Mum/2017
ITA No. 6787/Mum/2017
ITA No. 6890/Mum/2017
ITA No. 6923/Mum/2017

Read from the judgment's own cause title. This page is filed under one of them.

PER BENCH:

1.

All these appeals pertains to Revenue and when called for hearing and pointed out to the learned Sr. DR that the tax effect in these appeals is below the prescribed limit as prescribed by the Central Board of Direct Taxes (CBDT) vide circular F.No. 279/Misc. 142/2007-ITJ (Pt) dated 11.07.2018, wherein monetary limits and other conditions for filing of departmental appeal before Tribunal has been revised and fixed at ₹ 20 lacs for filing of the Departmental appeal, the learned Sr. DR could not controvert the fact that the tax effect in all these appeals of Revenue is below the prescribed limit as prescribed by CBDT circular dated 11.07.2018.

2.

We have gone through the circular and noticed that this circular will apply to pending appeals also & we are referring to Para 13 of the circular for this proposition, which reads as under: -

“13. This Circular will apply to SLPs/appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/cross objections/ references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.”

3.

In view of the above, we are of the view that the Revenue’s appeals are fully covered by CBDT circular No. 3 of 2018 and there is no exception brought out by the Revenue that these appeals falls under any of the exception as provided in Para 10 which reads as under: -

“10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:

(a) Where the Constitutional validity of the provisions of an Act or Rule IS under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection m the case has been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/ bank accounts.”

4.

When this was confronted to the learned Sr. Departmental Representative Shri DG Pansari, he could not point out that these appeals falls under any of the exception as provided in Circular No. 3 of 2018 but he only requested that a liberty be given to Revenue for recalling of the order in case the AO found that these cases falls under any of the exceptions as provided in this circular. Admittedly, the tax effect in these appeals of Revenue is much below the prescribed limit of filing appeal before the Tribunal i.e. ₹ 20 lacs as per CBDT circular No. 3 of 2018. In view of the above, these appeals of Revenue are dismissed as withdrawn in view of Circular No 3 of 2018. However, the Revenue is at liberty to get the order recalled in case any of the above appeals falls under the exceptions as provided in above CBDT circular.

5.

In the result, all these appeals of Revenue are dismissed as withdrawn. Order pronounced in the open court on 10-08-2018. AadoSa kI GaaoYaNaa Kulao mao idnaMk 10-08-2018 kao kI ga[- .

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