What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was not maintainable as per the latest CBDT Circular. The circular prescribed a minimum tax effect of Rs. 10 lakhs for filing appeals before the ITAT and applied retrospectively.

The Revenue appealed against the deletion of an addition made by the Assessing Officer (AO) on account of discrepancies in sundry creditors. The tax effect of the disputed amount was below Rs. 10 Lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the tax effect and the applicability of CBDT Circulars on monetary limits for appeals.

ITO vs Aswani Engineering Co. | ITAT Mumbai 2016

Income Tax Appellate Tribunal, “A” BENCH, MUMBAI

Before: SHRI C. N. PRASAD, JM & SHRI MANOJ KUMAR AGGARWAL, AM

For Appellant: Shri A.Ramachanrdan, DR

सुनवाई की तायीख / : 24/11/2016 Date of Hearing घोषणा की तायीख / : 24/11/2016 Date of Pronouncement आदेश / O R D E R Per Manoj Kumar Aggarwal (Accountant Member) 1. The present appeal by Revenue for Assessment Year [AY] 2008-09 assails the order of the Commissioner of Income Tax (Appeals)-7 [CIT(A)], Mumbai dated 21/01/2014 on the ground that CIT(A) was not justified in deleting addition for Rs.29,57,352/- made by AO on account of discrepancies in the amount of Sundry Creditors.

At the outset, it has been brought to our notice that this being revenue’s appeal wherein the tax effect of amount in dispute is below Rs.10 Lacs and the same is covered by latest ITO Vs. M/s.Ashwani Engg. Co. Assessment Year 2008-2009 CBDT Circular number 21 of 2015 dated 10/12/2015. As per the 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 are dismissed in limine.

In Nutshell, the appeal of the revenue is dismissed. Order pronounced in the open court on 24th November, 2016 Sd/- Sd/- (C. N. Prasad) (Manoj Kumar Aggarwal) न्मायमक सदस्म / Judicial Member रेखा सदस्म / Accountant Member भुंफई Mumbai; ददनांक Dated : 24.11.2016 Laxmikant Deka, Sr. PS आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : अऩीराथी / The Appellant 1. प्रत्मथी / The Respondent 2. आमकय आमुक्त(अऩीर) / The CIT(A) 3. आमकय आमुक्त / CIT – concerned 4. ववबागीम प्रयतयनधध, आमकय अऩीरीम अधधकयण, भुंफई / DR, ITAT, Mumbai 5. गार्ड पाईर / Guard File 6. आदेशाि सार/ BY ORDER, उप/सहायक पुंजीकार (Dy./Asstt. Registrar) आयकर अपीऱीय अधिकरण, भुंफई / ITAT, Mumbai

ITO Vs. M/s.Ashwani Engg. Co. Assessment Year 2008-2009 Sr. No. Details Date Initials Designation 1 Draft dictation sheets are attached Self Sr.PS/PS Typed on computer by Member 2 Draft dictated on Sr.PS/PS 3 Draft Placed before author Sr.PS/PS 4 Draft proposed & placed before JM/AM the Second Member 5 Draft discussed/approved by JM/AM Second Member 6 Approved Draft comes to the 24.11.16 Sr.PS/PS Sr.PS/PS 7 Order pronouncement on 24.11.16 Sr.PS/PS 8 File sent to the Bench Clerk 25.11.16 Sr.PS/PS 9 Date on which the file goes to the Head clerk 10 Date on which file goes to the AR 11 Date of Dispatch of order

ITO 23(1)(2), MUMBAI vs. ASWANI ENGINEERING CO., MUMBAI

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