ACIT 4(2)(1), MUMBAI vs. UDAY SURESH SHAH, MUMBAI

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ITA 278/MUM/2017Status: DisposedITAT Mumbai31 July 2018AY 2010-113 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 held that the appeal was covered by the CBDT's low tax effect circular. Therefore, the revenue's appeal was dismissed.

What were the facts?

The revenue appealed against the deletion of disallowance under Section 14A. The tax effect of the additions contested by the revenue was below the prescribed limit of Rs. 20 Lacs.

What were the issues?

Whether the revenue's appeal should be dismissed due to low tax effect as per CBDT circular.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

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

Per Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by revenue for Assessment Year [AY] 2010- 11 contest the order of Ld. Commissioner of Income-Tax (Appeals)-09 [CIT(A)], Mumbai, Appeal No.CIT(A)-9/Cir.4/576/2015-16 dated 05/10/2016 qua deletion of disallowance u/s 14A for Rs.58.30 Lacs as ITA.No.278/Mum/2017 Uday Suresh Shah Assessment Year-2010-11 made by Ld. AO in an assessment u/s 143(3) read with section 263 on27/02/2016.

2.

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.

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:-

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