DCIT 4 (2)(1), MUMBAI vs. NIRPAN SECURITIES PVT. LTD., MUMBAI

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ITA 2227/MUM/2016Status: DisposedITAT Mumbai25 July 2018AY 2012-134 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 was below the prescribed monetary limit of Rs. 20 lakh for appeals before the ITAT. The Revenue's counsel did not controvert this fact.

What were the facts?

The Revenue filed an appeal against an order restricting disallowance under Section 14A. The assessee pointed out that the tax effect in the appeal was below the monetary limit prescribed by CBDT circulars.

What were the issues?

Maintainability of the Revenue's appeal due to low tax effect as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

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

Before: Shri Joginder Singh, & Shri Rajesh Kumar

For Respondent: Shri Poojan Mehta
Hearing: 25/07/2018

आदेश / O R D E R Per Joginder Singh (Judicial Member) The Revenue is aggrieved by the impugned order dated 28/01/2016 of the Ld. First Appellate Authority, Mumbai, directing the Ld. Assessing Officer to restrict the disallowance made under section 14A of the Income Tax Act, 1961 (hereinafter the Act) r.w.s. 8D of the I.T. Rules to 5% in spite of the fact that the issue is covered by the decision in the case of M/s Godrej & Boyce Mfg. Company Ltd.

2.

During hearing of this appeal, at the outset, Shri Poojan Mehta, ld. counsel for the assessee, pointed out that the tax effect in the present appeal, filed by the Revenue, is below prescribed monetary limit of Rs.20 lakh. The ld. DR, Shri Suman Kumar, did not controvert the factual matrix.

1.

2.1. We have considered the rival submissions 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

M/s Nirpan Securities Pvt. Ltd.

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. representatives from both sides at the conclusion of the hearing on 25/07/2018.

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