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Income Tax Appellate Tribunal, MUMBAI BENCHES, ‘J’ MUMBAI
Before: Shri Joginder Singh, & Shri Manoj Kumar Aggarwal
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.