ITO (IT) 2(3)(1), MUMBAI vs. RAJIV GOGIA, MUMBAI

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ITA 1348/MUM/2015Status: DisposedITAT Mumbai29 December 2016AY 2011-122 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 held that the appeal was not maintainable as the tax effect was below Rs. 10 lakhs, as per CBDT Circular No. 21/2015. This circular is retrospective and applies to pending appeals.

What were the facts?

The revenue filed an appeal against the CIT(A)'s order concerning the assessment year 2011-12. The dispute involved whether the cost of improvement should be considered for indexation while computing capital gains.

What were the issues?

The primary issue was the maintainability of the revenue's appeal before the ITAT due to a low tax effect, based on a CBDT circular.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “D”, MUMBAI

For Appellant: Shri Shrikant Namdeo
For Respondent: Shri Rajesh Jaiswal
Hearing: 29/12/2016Pronounced: 29/12/2016

O R D E R

PER CN PRASAD, JM :

1.

The appeal filed by the revenue is directed against the order dated 11.02.2016, passed by the Ld. CIT (Appeals) -10, Mumbai, for the assessment year 2011-12.

At the outset, both the parties admitted that the tax effect in the appeal 2. of the revenue is below Rs.10 lakhs as the dispute in appeal is as to whether the cost of improvement of Rs.35,95,350/-(7,42,730+28,52,620) should be considered for indexation while computing the capital gains of the Assessee and therefore, the same is not maintainable as per the CBDT Circular No. 21/2015 dated 10.12.2015. We found that as per the recent Circular

Shri Rajiv Gogia No.21/2015 dated 10.12.2015, issued by the CBDT, the monetary limit has been revised for filing appeal before ITAT by the revenue fixing the tax effect limit of Rs.10 lakhs. In the instant case, the tax effect is below Rs.10 lakhs, therefore the same is not maintainable and liable to be dismissed in limine. This Circular is retrospective and applicable to the pending appeals also.

3.

Considering the above CBDT Circular, we found that this appeal of the revenue is not maintainable as the tax effect in this appeal is below Rs.10 lakhs. Accordingly, we dismiss the appeal of the revenue.

4.

In the result, appeal of revenue is dismissed.

Order has been pronounced in the Open Court on 29.12.2016.

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