ITO, WD-40(1), KOLKATA, KOLKATA vs. SHANKAR VAJPAYEE, KOLKATA

ITA 1225/KOL/2015Status: DisposedITAT Kolkata08 February 2017AY 2007-20083 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 CBDT Circular No. 21/2015, which increased the monetary limit for filing appeals by the Revenue to Rs. 10,00,000/-, was applicable retrospectively. Since the tax effect in this appeal was below this limit, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal before the ITAT, which was initially dismissed due to low tax effect. The order was later recalled as the initial dismissal was based on a misunderstanding of CBDT circular applicability. The assessee argued that the Revenue's appeal fell below the revised monetary limit for appeals.

What were the issues?

Whether the revised monetary limit for filing appeals by the Revenue, as per CBDT Circular No. 21/2015, is applicable to pending appeals and whether the tax effect in the present appeal falls below this limit.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA

Before: Shri J. Sudhakar Reddy & Shri S.S.Viswanethra Ravi

Per Shri J. Sudhakar Reddy, A.M. This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax (Appeals)-12, Kolkata dated 30.07.2015 for the assessment year 2007-08.

The above appeal was dismissed by the Tribunal vide its order dated 28th December, 2015 as the tax effect was below Rs.10 lakhs. Latter, this order was re-called by the Tribunal in M.A. No. 58/KOL/2016 vide order dated November 25, 2016, on the ground that the CBDT ./2015 Assessment year: 2007-2008 Page 2 of 3 Circular in question does not apply to the case, where the addition is made based on revenue audit objection, as in the case of the assessee.

When the case came up for hearing, the ld. counsel for the assessee submitted that the tax effect involved in this appeal of the Revenue is less than the revised monetary limit fixed by the CBDT vide Circular No. 21/2015 dated 10th December, 2015 at Rs.10,00,000/- for filing the appeal by the Revenue before the Tribunal and that this position is clearly evident from the grounds raised by the Revenue in this appeal. It was submitted that the CBDT has clarified that the Circular applies to issues, which were raised by way of audit objection and that no exception is made.

In Circular No. 21/2015 (supra) issued by the CBDT, the monetary limit for filing the appeal by the Revenue before the Tribunal has been increased to Rs.10,00,000/- and as clarified in the said Circular, the said monetary limit is applicable retrospectively even to the appeals pending before the Tribunal. The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.10,00,000/- may be withdrawn/ not pressed.

The ld. D.R. did not dispute these submissions of the ld. counsel for the assessee.

6. Keeping in view the instruction given by the CBDT vide Circular No. 21/2015 dated 10.12.2015, which is squarely applicable in the present case, the appeal filed by the Revenue in this case is dismissed.

In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open Court on February 8th , 2017.

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