DCIT, CIRCLE - 13(2), KOLKATA, KOLKATA vs. M/S. SUNSHINE TRACON PVT. LTD., HOWRAH

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ITA 1280/KOL/2018Status: DisposedITAT Kolkata05 February 2019AY 2012-132 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The Tribunal dismissed the Revenue's appeal as not pressed/withdrawn, citing the CBDT circular regarding monetary limits for appeals. The appeal was treated as withdrawn due to the low tax effect.

What were the facts?

The Revenue appealed the deletion of an addition made under Section 14A read with Rule 8D by the CIT(A). The tax effect involved in the appeal was below the monetary limit set by the CBDT for filing appeals.

What were the issues?

Whether the Revenue's appeal should be dismissed due to low tax effect below the CBDT prescribed monetary limit for filing appeals before the Tribunal.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH (D

Before: Shri P.M. Jagtap & Shri A.T. Varkey, JM]

order

: February 05, 2019 ORDER

Per P.M. Jagtap, Vice President

1.

This appeal is preferred by the revenue against the order of Ld. CIT(A) – I, Kolkata dated 07.03.2018 and the grounds raised

therein by the Revenue read as under: “1. Whether on the basis of facts & circumstances of the case and in law the Ld. CIT(A), Kolkata erred in deleting the addition of Rs. 38,67,855/- u/s 14A of the IT Act, read with Rule 8D of the IT Rule, 1962 without appreciating the views of the A.O.

2. Whether on the basis of facts & circumstances of the case and in law the Ld. CIT(A), Kolkata erred in deleting the addition of Rs. 38,67,855/- u/s 14A of the IT Act, read with Rule 8D of the IT Rule, 1962 ignoring the recent judgment dated 12.02.2018 of the Hon’ble Supreme Court in the case of Maxopp Investment Ltd. (SC) where it is held that the applicability of sec. 14A does not hinge on the actual earning of tax-exempt income.”

2. At the time of hearing fixed in this case today i.e. 05.02.2019, none has appeared on behalf of the assessee. As pointed out by the Assessment Year: 2012-13 M/s. Sunshine Tracon Pvt. Ltd. learned DR, the tax effect involved in this appeal of the assessee however is less than monetary limit of Rs. 20 lacs fixed by the CBDT vide Circular No. 3/2018 dated 11.07.2018 for filing the appeal of the revenue before the Tribunal. As clarified in the said circular, the revised monetary limit of Rs. 20 lacs for filing the appeal before the Tribunal is applicable even to the pending appeals and such appeals may be treated as not pressed / withdrawn. We accordingly dismiss this appeal of the revenue by treating the same as not pressed / withdrawn.

3.

In the result, the appeal of the revenue is dismissed. Order Pronounced in the Open Court on 5th February, 2019.

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