INCOME TAX OFFICER, MUMBAI vs. SUMANGAL COMMODITIES PRIVATE LIMITED, MUMBAI

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ITA 2213/MUM/2024Status: DisposedITAT Mumbai16 October 2024AY 2010-11Bench: SMT. BEENA PILLAI, JUDICIAL MEMBER AND SMT.RENU JAUHRI (Accountant Member)1 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 found that the CBDT Circular No. 5/2024 is applicable as the tax demand is below Rs. 60 lakhs. Therefore, the appeal is liable to be dismissed on the grounds of low tax effect. The Revenue is granted liberty to seek recall if subsequent findings bring the issue under the circular's exceptions.

What were the facts?

The appeal by the Revenue concerned an assessment year 2010-11 with a tax demand of Rs. 18,00,000/-. The Revenue relied on an exception clause within CBDT Circular No. 5/2024, citing a letter from the Pr. CIT-5.

What were the issues?

Whether the appeal filed by the Revenue should be dismissed due to low tax effect as per CBDT Circular No. 5/2024, or if an exception applies.

Which sections of the Income-tax Act were involved?

CBDT Circular No.5/2024

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH SMC, MUMBAI

Before: SMT. BEENA PILLAI & SMT.RENU JAUHRI

For Appellant: Dr. K. Shivaram, Sr. Adv

ORD ER PER BEENA PILLAI, JM: At the time of hearing, it was brought to the knowledge of the Bench that the tax on disputed amount in this case is below Rs.60 lakhs, therefore covered by CBDT Circular No.5/2024dated 15/03/2024. We find as per the CBDT Circular No.5/2024dated 15/03/2024, no appeal shall be filed by the Revenue before the Tribunal where the tax effect is below Rs.60 lakhs. In the present case, the Assessing Officer has raised tax cdemand for the assesSmenl Vear under consideration 1S Rs. 18,00,000/-.

1.

Sumangal Commodities Pvt. Ltd. The Ld.DR though accepted the low tax effect in this appeal 2. placed reliance on the exception clause 3(i) of CBDT Circular No. 5/2024 to support the case of the revenue. He has filed a letter dated 06/08/2024 by the Pr. CIT-5 in support of his submnission, which is placed on record. 2.1. In our view, the Circular No.5 0f the CBDT is applicable to the present appealsince, the tax demand raised by the revenue. authority is below Rs.60 lakhs. Thus the present appeal is liable to be dismissed on low tax effect. However, the revenue is given liberty to move appropriate application for recall of the present order in accordance with the law, if it is subsequently found that ihe issue contested in this appeal is covered by any of the exceptions in the CBDT circular.

3.

Accordingly, we dismiss the Revenue's appeal on maintainability and low tax effect.

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