What did the Tribunal hold?

The Tribunal dismissed the revenue's appeals in limine because the tax effect was below the threshold stipulated in the CBDT circular and the issues did not appear to fall under any exceptions. The revenue was granted liberty to file a miscellaneous application if exceptions were applicable.

The revenue filed appeals against orders of the CIT(A) where the quantum of dispute was less than Rs. 20.00 lakhs. The CBDT Circular No. 3/2018 precludes the revenue from pursuing appeals with a tax effect of Rs. 20.00 lakhs or less, unless specific exceptions apply.

What were the issues?

Whether the revenue's appeals should be dismissed based on the tax effect threshold and exceptions outlined in CBDT Circular No. 3/2018.

ACIT vs Idea Count Education 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 (2 matters)

I.T.A. No. 3694/Mum/2017

I.T.A. No. 3622/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 dispute (`) M/s. Chemical Process Piping P. Ltd 48,75,475/- M/s. Idea Count Education P. Ltd. 48,61,115/- 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 these appeals 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 these appeals fall in any of the exceptions.

We have noticed that the tax effect involved in these appeals 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 16(1), MUMBAI vs. IDEA COUNT EDUCATION P. LTD, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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