ITO 5(2)(3), MUMBAI vs. MALABAR HILL CLUB LTD, MUMBAI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal noted that the tax effect was below the prescribed limit for filing an appeal, as per the latest CBDT circular. Therefore, the appeal filed by the Revenue Department was deemed liable for dismissal.
What were the facts?
The Revenue Department preferred an appeal against an order of the Ld. Commissioner of Income Tax (Appeals) for AY 2005-06. The assessee's tax effect, including a disallowance under section 14-A, was reduced by the Ld. Commissioner. The tax effect in question was less than the prescribed limit for appeals to the Tribunal as per a recent CBDT circular.
What were the issues?
Whether the Revenue's appeal is maintainable before the Tribunal given the tax effect is below the prescribed limit as per the latest CBDT circular.
Which sections of the Income-tax Act were involved?
Section 14-A,Section 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI GIRISH AGRAWAL
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Revenue against the order dated 27.11.2009, impugned herein, passed by the Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2005-06.
The Assessee has filed computation of tax effect including on the disallowance of Rs.1,17,69,615 u/s 14-A of the Act made by the Assessing Officer (AO), which is reduced to 5% by the Ld. Commissioner.
Admittedly, the tax effect involved in the case, is less than Rs.60,00,000/- which is the prescribed limit as set out in latest CBDT circular No.9/2024 dated 17.09.2024 for filling appeal before the Tribunal. Thus, the appeal of the Revenue Department is liable to be dismissed, however, with liberty to the Revenue Department to seek recalling of this order, on finding the circumstance or judgment contrary, if any.
Resultantly, the Revenue's appeal is dismissed with liberty as mentioned above.
Order pronounced in the open court on 07.11.2024.
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