ITO 4(3)(4), MUMBAI vs. RAJENDRA PUSHPATINATH KARUNDIA, MUMBAI

Aforesaid appeal by revenue for Assessment Year [AY] 2012-13 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-9 [CIT(A)], Mumbai, Appeal No.CIT(A)-9/Cir.4/250/2015-16 dated 24/10/2016 qua certain relief to the assessee. None has appeared for assessee and therefore, left with no option, we proceed to dispose-off Rajendra Pashupatinath Karundia Assessment Year-2012-13 the appeal on the basis of material available on record and after hearing Ld. Departmental Representative.

The assessment for impugned AY was framed by Ld. Income Tax Officer-4(3)(4), Mumbai [AO] u/s 143(3) of the Income Tax Act,1961 on 25/03/2013 wherein the income of the assessee has been assessed at Rs.67.29 Lacs after certain additions as against returned income of Rs.2.70 Lacs filed by the assessee on 31/03/2014. 3. Aggrieved, the assessee contested the same with partial success before Ld. CIT(A) vide impugned order dated 24/10/2016 wherein Ld. CIT(A) provided a relief of Rs.4.58 Lacs on account of interest expenses as disallowed by Ld. AO. Another relief of Rs.50 Lacs was provided to the assessee on account of deduction u/s 54 which was claimed by the assessee during assessment proceedings. Aggrieved by the action of Ld. CIT(A), the revenue is in further appeal before us. 4. At the outset, it is noted that 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, Shri Ram Tiwari has controverted the same by submitting that necessary instructions / certificate, in this regard, would be required from higher authorities. 5. 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:-

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 letter, if at a later stage, it is found that the matter is covered by any exceptions provided in the aforesaid circular.

The appeal stand dismissed.