ITO, CHENNAI vs. JANANI PROPERTIES & ESTATES P. LTD., CHENNAI

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ITA 308/CHNY/2017Status: DisposedITAT Chennai06 April 2017AY 2007-082 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 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?

Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ (SMC

Before: SHRI ABRAHAM P. GEORGE]

For Respondent: Shri. D. Anand, Advocate

आदेश / O R D E R

1.

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.

3.

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/-.

5.

In the result, the appeal of the Revenue stands dismissed Order pronounced on Wednesday, the 12th day of April, 2017, at Chennai.

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