What did the Tribunal hold?

The Tribunal held that the tax effect of the disputed quantum was below the monetary limit specified in CBDT Circular No. 03/2018. Therefore, the appeal filed by the Revenue was not maintainable.

The Revenue appealed against a relief granted to the assessee regarding rental income. The assessee filed a cross-objection. The tax effect of the additions contested by the Revenue was below the prescribed limit for appeals.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the low tax effect, as per the CBDT circular on monetary limits for appeals.

ACIT vs Moreshwar Trading Co P. Ltd | ITAT Mumbai 2018

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY, JM & SHRI MANOJ KUMAR AGGARWAL, AM

Heard together (2 matters)

ITA.No.4125/Mum/2016

CO.No.55/Mum/2018

Read from the judgment's own cause title. This page is filed under one of them.

Per Bench

The captioned appeal by revenue for Assessment Year [AY] 2010- 11 contest the order of Ld. Commissioner of Income-Tax (Appeals)-13 [CIT(A)], Mumbai, Appeal No.CIT(A)-13/ACIT-7(2)(2)/103/2015-16dated 14/03/2016qua certain relief provided to the assessee on account of certain rental income as made by Ld. AO in an assessment u/s 143(3)vide order dated 01/03/2013. The assessee is in cross-objection against the same.

At the outset, Ld. Authorized Representative for assessee 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, Ms. Pooja Swaroop, has controverted the same by submitting that necessary instructions / certificate, in this regard, would be required from higher authorities.

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

ITA.No.4125/Mum/2016 &CO.No.55/Mum/2018 Moreshwar Trading Company Pvt.Ltd. Assessment Year-2010-11 3 Before Supreme Court 1,00.00,000 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.

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.

Resultantly, the appeal as well as cross-objection stand dismissed. Order pronounced in the open court on 31st July, 2018 (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 : 1. अपीलाथ"/ The Appellant

""थ"/ The Respondent 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, उप/सहायकपंजीकार (Dy./Asstt.

ACIT CIR 7(2)(2), MUMBAI vs. MORESHWAR TRADING CO P. LTD, MUMBAI

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