What did the Tribunal hold?

The Tribunal noted that the tax effect was below the prescribed limit of Rs. 20 lakhs as per CBDT Circular No. 3 of 2018. Therefore, the appeal filed by the Revenue was not maintainable.

The Revenue was aggrieved by an order that deleted an addition on account of short-term capital gains. The assessee had offered the gains as long-term capital gains. The tax effect in the appeal was below the prescribed monetary limit.

What were the issues?

Whether the appeal filed by the Revenue is maintainable when the tax effect is below the prescribed monetary limit set by the CBDT.

ITO vs Manoj Sitaram Gupta | ITAT Mumbai 2018

Income Tax Appellate Tribunal, MUMBAI BENCHES, ‘B’ MUMBAI

Before: Shri Joginder Singh, & Shri Rajesh Kumar

Hearing: 26/07/2018

आदेश / O R D E R Per Joginder Singh (Judicial Member) The Revenue is aggrieved by the impugned order dated 12/11/2013 of the Ld. First Appellate Authority, Mumbai, in deleting the addition on account of short term capital gains amounting to Rs.36,01,250/- instead of treating it as long term capital gain as offered by the assessee.

During hearing of this appeal, none was present for the assessee in spite of the fact that RPAD notice was issued to the assessee. It was pointed out that the tax effect in the present appeal is below prescribed monetary limit.

The ld. DR, Ms. Neha Thakur, did not controvert that the tax effect is below prescribed limit on account of latest circular issued by CBDT.

2.1. We have considered the submissions of Ld. DR 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 lakh, vide instruction/Circular No.3 of 2018, issued by CBDT (F No.279/Misc./142/ 2007-ITJ(PT) dated 11/07/2018. As

per 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.

This order was pronounced in the open court in the presence of the ld. DR at the conclusion of the hearing on 26/07/2018.

ITO 13(2)(2), MUMBAI vs. MANOJ SITARAM GUPTA, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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