DCIT CEN CIR 40, MUMBAI vs. SEEMA R SOOMANEY, MUMBAI

Date of hearing : 21-11-2016 Date of order : 25-11-2016 O R D E R Per ASHWANI TANEJA, AM: These appeals have been filed by the Revenue against the consolidated order passed by Ld. CIT(A) dated 13-01-2013 against the assessment orders passed u/s 153A r.w.s. 143(3) of the Act for A.Ys 2002- 03, 2003-04 and 2004-05.

2 to 930/Mum/2014 3. Per contra, the Ld. DR did not negate the submission of the assessee. 4. We have gone through the orders passed by lower authorities. During the course of hearing, the Ld. Counsel of the assessee submitted that tax effect involved in these appeals filed by the department in these years is as under:-

Assessment year. Amount 2002-03 Rs.8,39,609 2003-04 Rs.2,98,072 2004-05 Rs.1,38,730 From the above, it is noted that in none of the years, the tax effect is more that Rs.10 lakhs. Our attention was drawn upon paragraph 5 of the aforesaid circular which reads as follows:- “5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If in the case of an assessee, the disputed issues arise in more than one assessment year, appeal, can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issue, exceeds the monetary limit specified in para 3. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In other words, henceforth, appeals can be filed only with reference to the tax effect in the relevant assessment year. However, in case of a composite order of any High Court or appellate authority, which involves more than one assessment year and common issues in more than one assessment year, appeal shall be filed in respect of all such assessment years even if the 'tax effect' is less than the prescribed monetary limits in any of the year(s), if it is decided to file appeal in respect of the year(s) in which 'tax effect' exceeds the monetary limit prescribed. In case where a composite order/ judgment involves more 3 to 930/Mum/2014 than one assessee, each assessee shall be dealt with separately.” Thus, from the perusal of the above, it is noted that the case of the assessee is squarely covered by paragraph 5 of the circular. Since in none of the years, tax effect is more than Rs.10 lakhs, we find that all the three appeals filed by the Revenue are not maintainable in view of the aforesaid circular and, therefore, these are dismissed as not maintainable.

Order was pronounced in the open court at the conclusion the hearing.