What did the Tribunal hold?

The Tribunal observed that the tax effect was below the prescribed limit for filing appeals as per Circular No. 21/2015. No exceptions mentioned in the circular were applicable.

The Revenue filed an appeal against the order of the CIT(A) for AY 2009-10. The tax effect involved in the appeal was less than Rs. 10 lakhs.

What were the issues?

Applicability of CBDT Circular No. 21/2015 regarding the monetary limit for filing appeals before the ITAT.

ACIT vs M/S Spr Retail Chain | ITAT Bangalore 2016

Income Tax Appellate Tribunal, BANGALORE BENCH A, BANGALORE

Before: SHRI. ABRAHAM P. GEORGE & SHRI. VIJAYPAL RAO

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A', BANGALORE BEFORE SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI. VIJAYPAL RAO, JUDICIAL MEMBER (Assessment Year : 2009-10) Asst. Commissioner of Income tax, Circle -2(1), Bangalore .. Appellant v. M/s. SPR Retail Chain, No,154, Jolly Masjid Road, Cottonpet, Bangalore 560 004 .. Respondent PAN : ABLFS7926F Assessee by : None Revenue by : Dr. P.K. Srihari, Addl. CIT Heard on : 06.01.2016 Pronounced on : 06.01.2016 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER :

This is an appeal filed by Revenue directed against order dated 27.02.2015 of CIT (A)-I, Bangalore, for the A. Y. 2009-10.

ITA.1846/Bang/2013 Page - 2

Nobody appeared on behalf of the assessee. When the appeal was taken up for hearing, the Bench pointed out to the Ld. DR that the tax effect involved in this appeal was less than Rs.10 lakhs for the impugned assessment year, therefore by virtue of Circular No.21/2015, dt.10.12.2015, is below the limit laid down for filing appeals before this Tribunal.

Ld. DR submitted that para 8 of the circular was not applicable in this case. Therefore he did not object to the application of the circular.

We have perused the orders and heard the Ld. DR. Para 4 of the circular No.21/2015 (supra) is reproduced hereunder :

“4. For this purpose, “tax effect” means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed (hereinafter referred to as “disputed issues”). However the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.”

The tax effect on the issues that are disputed by the Revenue is less than Rs.10 lakhs for the impugned assessment year. Assessee had not challenged the constitutional validity of any provisions of the Act nor had it ITA.1846/Bang/2013 Page - 3 challenged the legality of the Circular. Revenue has not brought to our notice anything to show that the appeal arose on an issue emanating from any Revenue Audit Objections accepted by the Department. Addition giving rise to the appeal does not relate to any undisclosed foreign assets / bank accounts. Thus we find that circular No.21/ 2015 (supra) is squarely applicable in this case. However if Revenue find that appeal arise out of issues emanating from audit objection it will be free to file MP for recalling this order.

With the above observations appeal of the Revenue is therefore dismissed.

Pronounced in the open court on this 6th day of January, 2016.

ACIT vs. M/S SPR RETAIL CHAIN, BANGALORE

What did the Tribunal hold?

What were the facts?

What were the issues?

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