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Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI
Before: D.T. GARASIA & SHRI MANOJ KUMAR AGGARWAL
CO Nos.57 & 63/M/2015 (Arising out of Assessment Year: 2010-2011 DCIT 28(2), 3rd Flr, Shri Naresh T. Aidasani, 415, Arenja Corner, Vashi Rly Stn. Compled, 4th Floor, Vs. Vashi, Sector-17, Vashi, Navi Mumbai – 400 703 Navi Mumbai – 400 705 PAN: ADYPA6970A (Appellant) (Respondent) Present for: Assessee by : Shri Devendra Jain, A.R. Revenue by : Shri Somesh Kumar, D.R. Date of Hearing : 28.06.2017 Date of Pronouncement : 29.06.2017 O R D E R Per Bench:
The present appeal by the Revenue and the cross appeals by the assessee have been preferred against the order dated 21.07.2015 of the Commissioner of Income Tax (Appeals) relevant to assessment year 2010-11.
At the outset, the Ld. D.R. has submitted that tax effect involved in this appeal is less than Rs. 10 lacs and the CBDT Circular No. 21/2015 is applicable to this appeal, hence, this appeal be dismissed as not pressed in terms of CBDT circular no 21/2015 dated 10/12/2015.
2 CO Nos.57 & 63/M/2015 Shri Naresh T. Aidasani 3. The CBDT vide Circular dated 10/12/2015 (supra) has revised the monetary limits for filing of appeals by the Department before the Tribunal and further vide Para 10 of the said circular it has been clarified that said circular is applicable retrospectively to the pending appeals also. The relevant portion of the circular dated 10/12/2015 (supra) is reproduced below:- “ 3.Henceforth appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:- Sl. No. Appeals in Income-tax matters Monetary Limits (In Rs.) 1. Before Appellate Tribunal 10,00,000 2. Before High Court 20,00,000 3. Before Supreme Court 25,00,000 ..........................................................................................................................
4. For this purpose, "tax effect" means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed (hereinafter referred to as "disputed issues"). However the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. …………………………………………………………………………… 8. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: (a)Where the Constitutional validity of the provisions of an Act or Rule are under challenge, or (b)Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d)Where the addition relates to undisclosed foreign assets/ bank accounts.
The monetary limits specified in para 3 above shall not apply to writ matters and direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by relevant provisions 3 CO Nos.57 & 63/M/2015 Shri Naresh T. Aidasani of statute & rules. Further, filing of appeal in cases of Income Tax, where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under section 12A of the IT Act, 1961, shall not be governed by the limits specified in para 3 above and decision to file appeal in such cases may be taken on merits of a particular case.
This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawal not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.” (underlined for emphasis by us)
The tax effect in dispute in the captioned appeal is stated to be below the monetary limit of Rs.10.00 lacs as specified in the CBDT Circular dated 10/12/2015 (supra). The Ld. DR has not brought out any material to suggest that the captioned appeal is protected by any of the circumstances prescribed in Para-8 of the Circular dated 10/12/2015 (supra). He therefore has stated that in view of the above circular of the CBDT, the captioned appeal be treated as withdrawn/not pressed. Hence, without going into the merit of the issues raised in the present appeal, this appeal is treated as dismissed as withdrawn/not pressed as its filing being in contravention of the CBDT Circular dated 10/12/2015(supra) read with section 268A of the Income Tax Act.
In the result, the appeal of the Revenue is dismissed. Since the appeal of the Revenue is dismissed, both cross appeals of the assessee have become infructuous.
Order pronounced in the open court on 29.06.2017.