ITO, CHENNAI vs. JANANI PROPERTIES & ESTATES P. LTD., CHENNAI
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 agreed with the assessee that the tax effect of the deleted disallowance was less than the threshold stipulated in CBDT Circular No. 21/2015. Therefore, the appeal filed by the Revenue was not maintainable.
What were the facts?
The Revenue appealed against the deletion of a disallowance of Rs. 13,82,159/- made under Section 40(a)(ia). The assessee contended that the tax effect was below the limit specified by CBDT Circular No. 21/2015, making the appeal not maintainable.
What were the issues?
Whether an appeal by the Revenue is maintainable before the Tribunal when the tax effect is below the monetary limit prescribed by CBDT circulars.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ (SMC
Before: SHRI ABRAHAM P. GEORGE]
आदेश / O R D E R
This appeal of the Revenue is directed against an order dated 08.12.2016 of the Commissioner of Income-tax (Appeals)-6, Chennai.
Ld. Counsel for the assessee at the outset submitted that 2.
Departmental appeal was against disallowance of �13,82,159/- levied u/s. 40(a)(ia) of the Income Tax Act, 1961 (in short ‘’the Act’’) which was deleted by the ld. Commissioner of Income Tax (Appeals). As per
ITA No. 308/Mds/2017 :- 2 -: ld. Authorised Representative tax effect was less than ten lakhs, by virtue of CBDT Circular No.21/2015, dated 10.12.2015, the appeal will not lie.
Per contra, ld. Departmental Representative fairly agreed that �13,82,159/- disallowance deleted by the ld. Commissioner of Income Tax (Appeals) and tax effect thereof was less than the limit mentioned in the CBDT circular.
We have considered the rival contentions and perused the 4. orders of the authorities below. By virtue of Circular No.21/2015, dated 10.12.2015, an appeal of the Revenue would not lie before this Tribunal where the tax effect is less than �10,00,000/-.
In the result, the appeal of the Revenue stands dismissed Order pronounced on Wednesday, the 12th day of April, 2017, at Chennai.
More judgments on Section 40(a)(ia)
- Rekha Agarwal, Jaipur vs ITO WD 4(1), JaipurITA 844/JPR/2025[2021-22]Status: Disposed21 Oct 2026AY 2021-22
- Cdg Petchem Limited, Hyderabad vs ITO, Ward - 1(1), HyderabadITA 1900/HYD/2025[2018-2019]Status: Disposed16 Oct 2026AY 2018-2019
- M/S. Shree Laminators Ltd., Kolkata vs DCIT, Circle 4(4), KolkataITA 1534/KOL/2026[2011-2012]Status: Disposed15 Oct 2026AY 2011-2012
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1493/KOL/2026[2015-2016]Status: Disposed15 Oct 2026AY 2015-2016
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1492/KOL/2026[2013-2014]Status: Disposed15 Oct 2026AY 2013-2014
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