DCIT RG 4(1), MUMBAI vs. AMAN INFRATEX LTD, MUMBAI

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ITA 2196/MUM/2011Status: DisposedITAT Mumbai15 December 2016AY 2007-082 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 was not maintainable as the tax effect was below the monetary limit prescribed by CBDT Circular No. 21/2015. This circular is retrospective and applicable to pending appeals.

What were the facts?

The revenue filed an appeal against the order for assessment year 2007-08. The disallowance made was to the book profits, resulting in a tax effect below Rs.10 lakhs.

What were the issues?

Whether an appeal filed by the revenue is maintainable when the tax effect is below the prescribed monetary limit as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 115JB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI

Before: SHRI SHRI CN PRASAD & SHRI MANOJ KUMAR AGGARWAL

For Appellant: Shri Rajesh Kumar Yadav
For Respondent: Shri RC Jain
Hearing: 15/12/2016Pronounced: 15/12/2016

Appellant by : Shri Rajesh Kumar Yadav Respondent by : Shri RC Jain Date of Hearing : 15/12/2016 Date of Pronouncement : 15/12/2016 O R D E R PER CN PRASAD, JM :

The appeal filed by the revenue is directed against the order dated 03.12.2010, passed by the DCIT Range 4(1), Mumbai, for the assessment year 2007-08.

2.

At the outset, we have noticed that the tax effect in the appeal of the revenue is below Rs.10 lakhs as the disallowance made u/s 40(a)(ia) of Rs.32,66,300/- was to the book profits determined u/s 115JB which is liable for tax at the rate of 10%. Therefore, the same is not maintainable as per the CBDT Circular No.21/2015, dated 10th December, 2015. We found that as per the recent Circular No.21/2015, dated 10th December, 2015, issued by the CBDT, the monetary limit has been revised for filing of appeal before ITAT by the revenue fixing the tax effect limit of Rs.10 lakhs. In the instant case,

2 Shri Aman Infratex Ltd Rs.10 lakhs, therefore the same is not maintainable and liable to be dismissed in limine. This Circular is retrospective and applicable to the pending appeals also.

3.

Considering the above CBDT Circular, we found that this appeal of the revenue is not maintainable as the tax effect in this appeal is below Rs.10 lakhs. Accordingly, we dismiss the appeal of the revenue.

4.

In the result, appeal of revenue is dismissed.

Order has been pronounced in the Open Court on 15.12.2016.

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