ACIT 16(1), MUMBAI vs. MEHBOOB PRODUCTIONS P.LTD, MUMBAI

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ITA 1879/MUM/2015Status: DisposedITAT Mumbai22 November 2016AY 2011-123 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 filed by the Revenue was not maintainable as per the CBDT Circular No. 21 of 2015, which sets a minimum tax effect of Rs. 10 lakhs for appeals before the ITAT.

What were the facts?

The Revenue appealed the CIT(A)'s order, which held certain expenses on plant and machinery acquisition as revenue in nature. The tax effect of the disputed amount was below Rs. 10 Lacs.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the ITAT given the low tax effect, in light of the CBDT's monetary limits for filing appeals.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

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

For Appellant: Shri Purushottam Kumar, DR, Ms. Aasifa Khan, AR
For Respondent: Ms. Aasifa Khan, AR

O R D E R

Per Manoj Kumar Aggarwal (Accountant Member ) 1. The present appeal by Revenue for Assessment Year [AY] 2011-12 assails the order of the Commissioner of Income Tax (Appeals)-4 [CIT(A)], Mumbai dated 07/01/2015 on M/s. Mehboob Productions P. Ltd. Assessment Year 2011-12 the ground that CIT(A) was not justified in holding certain expense on acquisition of plant & machinery as revenue in nature.

2.

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 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.

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