What did the Tribunal hold?

The Tribunal noted that the tax effect was below the monetary limit prescribed by CBDT circular. Therefore, the appeal filed by the Revenue was not maintainable.

The Revenue filed an appeal against an order that deleted an addition of Rs. 42,12,226/-. The assessee pointed out that the tax effect of the appeal was below the prescribed monetary limit of Rs. 20 lakhs.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable given the tax effect was below the prescribed monetary limit for appeals before the ITAT.

ITO vs Shramik Multitrade P.Ltd | ITAT Mumbai 2018

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

Before: Shri Joginder Singh, & Shri Manoj Kumar Aggarwal

For Respondent: Shri A. Mohan- DR, Shri Ajay R Singh

Hearing: 21/08/2018

आदेश / O R D E R Per Joginder Singh(Judicial Member) The Revenue is aggrieved by the impugned order dated 23/01/2017 of the Ld. First Appellate Authority, Mumbai, deleting the addition of Rs.42,12,226/- on account of suppressed gross profit not realizing that even forward contracts are governed by price band of commodities and are listed on the Commodity Exchange.

During hearing of this appeal, at the outset, Shri Ajay R. Singh, ld. counsel for the assessee, pointed out that the tax effect in the present appeal, filed by the Revenue, is below prescribed monetary limit of Rs.20 lakhs as the addition made/challenged is for Rs.42,12,266/- on which the tax effect comes to Rs.12,63,679/-. The ld. DR, Shri A.

Mohan, 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 limit of Rs.20 lakhs, as provided vide instruction/Circular No.3 of 2018, issued by CBDT (F No.279/Misc./142/ 2007-ITJ(PT) dated 11/07/2018. As per

M/s Shramik Multitrade Pvt. Ltd. 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 Ld. representatives from both sides at the conclusion of hearing on 21/08/2018.

ITO 13(2)(3), MUMBAI vs. SHRAMIK MULTITRADE P.LTD, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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