ACIT 1(1)(1), MUMBAI vs. BOMBAY GAS COMPANY LTD, MUMBAI

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ITA 4617/MUM/2016Status: DisposedITAT Mumbai17 July 2018AY 2003-042 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 dismissed the revenue's appeal in limine as the tax effect was below the threshold specified in CBDT Circular No. 3/2018. The revenue was granted liberty to move a miscellaneous application if the issue fell under exceptions in the circular.

What were the facts?

The revenue appealed against the deletion of interest disallowance of Rs. 52.03 lakhs made under Section 36(1)(iii). The tax effect involved was less than Rs. 20.00 lakhs.

What were the issues?

Whether the revenue's appeal should be entertained given the tax effect is below the monetary limit prescribed by CBDT circulars for filing appeals.

Which sections of the Income-tax Act were involved?

Section 36(1)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” Bench, Mumbai

Before: Shri B.R. Baskaran (AM) & Shri Ramlal Negi (JM)

For Appellant: Shri Manish V. Shah &, Ms. Niyanta Mehta
For Respondent: Shri Omi C. Ningshen
Hearing: 17.7.2018Pronounced: 17.7.2018

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.

2.

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.

3.

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.

4.

In the result, the appeal of the revenue is dismissed. Order has been pronounced in the Court on 17.7.2018.

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