ITO-28(2)(1), VASHI vs. PANKAJ SABHARWAL, SANPADA

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ITA 3868/MUM/2024Status: HeardITAT Mumbai25 September 2024AY 2011-12Bench: SHRI B R BASKARAN, ACCOUNTANT MEMBER, SHRI SUNIL KUMAR SINGH (Judicial Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the tax effect in both appeals was below the monetary limits stipulated in CBDT Circular No. 03/2018 and Circular No. 17/2019, which directs that no appeal shall be filed before the Tribunal if the tax effect is below Rs. 50,00,000/-.

What were the facts?

The Revenue filed two appeals against the orders of the CIT(A) which had partly allowed the assessee's appeals and directed the assessing officer to recalculate penalties. The tax effect in both appeals was below the monetary limits prescribed by CBDT circulars.

What were the issues?

Whether the appeals are maintainable given the tax effect is below the monetary limits specified in the CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH

Before: SHRI B R BASKARAN, & SHRI SUNIL KUMAR SINGH

For Respondent: Mr. Krishnakumar, Sr. DR
Hearing: 19/09/2024Pronounced: 25/09/2024

आदेश / O R D E R PER SUNIL KUMAR SINGH (J.M): 1. These two appeals have been preferred against the impugned orders each dated 04.06.2024 passed in Appeal nos. CIT(A)26, Mumbai/10011/2019-20 and CIT(A)26, Mumbai/10010/2019-20 respectively by the Ld. Commissioner of Income–tax(Appeals)/National Faceless Appeal Centre (NFAC) [hereinafter referred to as the “CIT(A)”] & 3869/Mum/2024 Pankaj Sabharwal u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as "Act"] for the Assessment Years [A.Y.] 2011-12 and 2010-11 respectively, wherein learned CIT(A) has partly allowed assessee’s appeals with direction to learned assessing officer to recalculate the penalty only u/s. 271(1)(c) of the Act on restricted addition of Rs. 1,47,521/- and Rs. 74,005/- respectively.

1.

3869/Mum/2024 have been filed by the Revenue on common grounds against the impugned orders each dated 04.06.2024, hence for the sake of brevity, both the appeals are being decided by a common order.

3.

At the very outset, we notice that the total tax effect in both the appeals is shown to be of Rs. 4,25,700/- and Rs. 2,40,110/- respectively, CBDT circulated No. 03/2018 dated 11.07.2018 r/w CBDT circular No. 17/2019 dated 08.08.2019 directs that no appeal shall be filed before the Tribunal where the tax effect is 50,00,000/- CBDT has further directed that the circular letter shall apply retrospectively. The tax effect under instant appeal is far below the monetary limits given in these circulars. In such circumstances, both the appeals stand dismissed as infructuous.

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