ITO WD 1(3), KALYAN vs. NOVA COSMATICS P.LTD, MUMBAI

The captioned appeal by Revenue for Assessment Year [AY] 2010-11 assails the order of Ld. Commissioner of Income Tax (Appeals)-2, [CIT(A)], Thane dated 02/03/2015 qua deletion of certain additions made by Assessing Officer [AO] with respect to sundry creditors.

Briefly stated the assessee, being resident corporate assessee, was subjected to an assessment u/s 143(3) vide AO order dated 25/03/2013 wherein the total income of the assessee was determined at Rs.2,64,88,580/- after certain adjustments/disallowances as against Loss return of Rs.6,90,477/- filed by the assessee on 27/09/2010. The assessee was engaged in the business of manufacturing and export of cosmetics products. It suffered an addition of Rs.13,23,016/- on account of certain discrepancies found in the account of a sundry creditor which, upon appeal, was allowed by the Ld. CIT(A) and the revenue has contested the same before us. 3. At the outset, it has been brought to our notice that the appeal, being revenue’s appeal, is covered by the Low Tax Effect circular issued by the CBDT. As per calculations, it is seen that the tax effect of amount in dispute in the appeal is below Rs.10 Lacs and hence the same is covered by latest CBDT Circular number 21 of 2015 dated 10/12/2015. As per this circular, new guidelines of monetary limit for filing of appeals by the Department has been issued, whereby the tax effect for filing of appeal before the ITAT has been prescribed at minimum of Rs. 10 lakhs. In the said Circular, it has been specifically clarified that the said instruction will apply retrospectively to all the pending appeals. The Ld. DR fairly conceded the position and could not point out any exceptions as given in the circular. Accordingly, the appeal filed by the revenue is not maintainable and therefore, dismissed in limine. 4. In Nutshell, the appeal of the revenue stands dismissed. Order pronounced in the open court on 24th April, 2017. Nova Cosmetics Private Limited Assessment Year 2010-11 Sd/- Sd/- (Saktijit Dey) (Manoj Kumar Aggarwal) �ाियक सद� / Judicial Member लेखा सद� / Accountant Member मुंबई Mumbai; िदनांक Dated : 2404.2017 Sr.PS:- Thirumalesh आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��थ� / The Respondent 2. आयकर आयु�(अपील) / The CIT(A) 3. आयकर आयु� / CIT – concerned 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, मुंबई / DR, ITAT, 5. Mumbai गाड� फाईल / Guard File 6. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar)