ITO 12(2)(2), MUMBAI vs. FUTURE VISION FIANCIAL ADVISORS P.LTD, MUMBAI

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ITA 424/MUM/2017Status: DisposedITAT Mumbai31 July 2018AY 2008-093 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 noted that the tax effect of the disputed addition was below the Rs. 20 Lacs limit for appeals before the Tribunal, as per CBDT Circular No. 03/2018. Therefore, the revenue's appeal was dismissed.

What were the facts?

The revenue appealed against the deletion of an addition of Rs. 50 Lacs made by the Assessing Officer. The assessee pointed out that the tax effect of the addition was below the monetary limit prescribed by a CBDT circular for filing appeals.

What were the issues?

Whether the revenue's appeal should be dismissed based on the low tax effect as per CBDT circular, despite the quantum of addition.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 147

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] 2008- 09 contest the order of Ld. Commissioner of Income-Tax (Appeals)-20 [CIT(A)], Mumbai, Appeal No.CIT(A)-20/ITO.12(2)(2)/IT-129/2015-16 dated 2810/2016 qua deletion of addition of Rs.50 Lacs u/s.68 as made ITA.No.424/Mum/2017 Future Vision Financial Advisors Pvt.Ltd. Assessment Year-2008-09 by Ld. AO in an assessment u/s 143(3) read with section 147 of the Income Tax Act,1961 vide order dated 30/03/2015.

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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