ITO (EXEMPRION)-1(4) MUMBAI, MUMBAI vs. KARNATAKA SANGHA, MUMBAI

Aforesaid appeal by revenue for Assessment Year [AY] 2010-11 contest the order of the Ld. Commissioner of Income-Tax (Appeals)- 07[CIT(A)], Mumbai, Appeal No.CIT(A)-7/IT-22/4/2014-15dated 15/01/2016qua certain relief provided to the assessee. The assessment for impugned AY with respect to assessee trust was framed by Ld. Karnataka Sangha Assessment Year-2010-11 Income Tax Officer (E)-II(1) u/s 143(3) on 28/02/2013 wherein the income of the assessee was assessed at Rs.47.53 Lacs as against ‘Nil’ returned filed by the assessee since, the assessee was denied the exemption u/s 11. Upon further relief, Ld. CIT(A) has held that the assessee was entitled for exemption u/s 11 and therefore, the impugned additions could not be sustained. Aggrieved, the revenue is in further appeal before us.

The Ld. Authorized Representative for assessee [AR], Shri. Bhupendra Shah, at the outset, drew our attention to the fact that the tax effect of the quantum additions as contested by the revenue is less than prescribed limit of Rs.20 Lacs and the same is covered by recently issued low tax effect Circular No.03/2018 dated 11/07/2018 issued by Central Board of Direct Taxes [CBDT]. The Ld. DR, Shri Ram Tiwari has controverted the same by submitting that necessary instructions / certificate, in this regard, would be required from higher authorities. 3. We have gone through the circular and find that the tax effect of quantum in dispute is below prescribed limit of Rs.20 Lacs and the assessee stood benefitted by the above circular issued by CBDT wherein the minimum monetary limit for filing the appeals before various appellate authorities have been fixed as under:- S. No. Appeals/ SLPs in Income-tax Monetary Limit (Rs.) matters 1 Before Appellate Tribunal 20.00,000 2 Before High Court 50.00,000 3 Before Supreme Court 1,00.00,000 Karnataka Sangha Assessment Year-2010-11 The aforesaid limits, as per para 13 of the circular applies to pending appeals also. In view of the admitted position, we dismiss the revenue’s appeal. 4. So far as the contentions raised by Ld. DR is concerned, we find that aforesaid circular does not envisage obtaining of any certificate from any authorities, in any manner. Nevertheless, the revenue is free to move appropriate application to recall this order, if at a later stage, it is found that the matter is covered by any exceptions provided in the aforesaid circular. 5. The appeal stand dismissed. Order pronounced in the open court on 31st July, 2018 Sd/- Sd/- (Saktijit Dey) (Manoj Kumar Aggarwal) �ाियकसद� / Judicial Member लेखासद� / Accountant Member मुंबई Mumbai; िदनांकDated :31.07.2018 Sr.PS:-Thirumalesh आदेशकी�ितिलिपअ�ेिषत/Copy of the Order forwarded to : अपीलाथ�/ The Appellant 1. ��थ�/ The Respondent 2. आयकरआयु�(अपील) / The CIT(A) 3. आयकरआयु�/ CIT– concerned 4. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण, मुंबई/ DR, ITAT, Mumbai 5. गाड�फाईल / Guard File 6. आदेशानुसार/ BY ORDER,