What did the Tribunal hold?

The Tribunal dismissed the revenue's appeals in limine as the tax effect was below the threshold specified in CBDT Circular No. 3/2018. The revenue was granted liberty to seek recall if the issue fell under exceptions.

The revenue filed appeals against ITAT orders granting relief to assessees. The tax effect in all appeals was less than Rs. 20.00 lakhs.

What were the issues?

Whether the revenue's appeals should be pursued when the tax effect is below the monetary limit prescribed by CBDT circulars, and if the issue falls within any exceptions.

ACIT vs Westex Infotech P.Ltd | ITAT Mumbai 2018

Income Tax Appellate Tribunal, “K” Bench, Mumbai

For Respondent: Shri Manoj Kumar

Hearing: 3.8.2018Pronounced: 3.8.2018

Heard together (3 matters)

I.T.A. No. 3037/Mum/2017

I.T.A. No. 3043/Mum/2017

I.T.A. No. 3077/Mum/2017

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

O R D E R Per Bench:-

The revenue has filed these appeals challenging the orders passed by Ld CIT(A) in the respective hands of the assessees and they relate to the assessment years mentioned in the caption against the name of each of the assessees. In all these appeals, the revenue is aggrieved by the decision of Ld CIT(A) in granting relief to the respective asessees.

These appeals were heard ex-parte. We noticed that the quantum in dispute involved in these appeals is as given below and hence the tax effect involved therein is less than Rs.20.00 lakhs.

Name of assessee Quantum in Penalty dispute amount Westex Infotech Pvt. Ltd. 57,06,098 - United Ocean Ship Management Pvt. Ltd. 57,84,679 - Shree Riddhi Chemicals Pvt. Ltd. - 12,10,011 Chhaya Kiran Sheth 60,36,395 - The CBDT has issued a new Circular No.3/2018 dated 11.07.2018 in supersession of its earlier Circular No.21/2015 dated 10.12.2015. According to the Circular No.3/2018, the revenue is precluded from pursuing its appeal if the tax effect is Rs.20.00 lakhs or less. Apparently the issue in dispute does not fall in any of the exceptions provided in paragraph 10 of the Circular No.3/2018, referred above. The Ld D.R, however, sought time to get a certificate from the PCIT/CIT concerned that the grounds urged in this appeal does not fall under any of the exceptions specified in the said circular. However, from the available material, he could not point out that the issue contested in this appeal fall in any of the exceptions.

We have noticed that the tax effect involved in this appeal is less than Rs.20.00 lakhs and the issue contested herein also apparently does not fall in any of the exceptions specified in the Circular. Accordingly we dismiss the appeals of the revenue in limine. However, the revenue is given liberty to move miscellaneous application seeking recall of this order, if it is found that the issue contested in this appeal falls in any of the exception provided in paragraph 10 of the Circular.

In the result, all the appeals of the revenue are dismissed. Order has been pronounced in the Court on 3.8.2018.

ACIT CIR 11(3)(2), MUMBAI vs. WESTEX INFOTECH P.LTD, MUMBAI

What did the Tribunal hold?

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