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Income Tax Appellate Tribunal, “C” Bench, Mumbai
Before: Shri B.R. Baskaran (AM) & Shri Ramlal Negi (JM)
O R D E R Per B.R. Baskaran (AM) :
The revenue has filed this appeal challenging the order dated 18-04- 2016 passed by Ld CIT(A)-2, Mumbai and it relates to the assessment year 2003-04. The revenue is aggrieved by the decision of Ld CIT(A) in deleting interest disallowance of Rs.52.03 lakhs made u/s 36(1)(iii) of the Act.
At the time of hearing, we noticed that the quantum in dispute is Rs.52.03 lakhs and hence the tax effect involved therein is less than Rs.20.00 lakhs. The CBDT has issued a new Circular No.3/2018 dated 11.07.2018 in supersession of its earlier Circular No.21/2015 dated 10.12.2015. According to the Circular No.3/2018, the revenue is precluded from pursuing its appeal if the tax effect is Rs.20.00 lakhs or less. Apparently the issue in dispute does not fall in any of the exceptions provided in paragraph 10 of the Circular No.3/2018, referred above. The Ld D.R, however, sought time to get a certificate from the PCIT/CIT concerned that the grounds urged in this appeal does not fall under any of the exceptions specified in the said circular.
2 M/s. Bombay Gas Co. Ltd.
However, from the available material, he could not point out that the issue contested in this appeal fall in any of the exceptions.
We have noticed that the tax effect involved in this appeal is less than Rs.20.00 lakhs and the issue contested herein also apparently does not fall in any of the exceptions specified in the Circular. Accordingly we dismiss the appeal of the revenue in limine. However, the revenue is given liberty to move miscellaneous application seeking recall of this order, if it is found that the issue contested in this appeal falls in any of the exception provided in paragraph 10 of the Circular.
In the result, the appeal of the revenue is dismissed. Order has been pronounced in the Court on 17.7.2018.