ITO WD 3(2), THANE vs. DEEPAK B SHAH, DOMBIVALI

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ITA 5070/MUM/2015Status: DisposedITAT Mumbai19 September 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 found that the tax effect was indeed below Rs. 10 lakhs. Following the CBDT Circular, which is applicable retrospectively to pending appeals, the Tribunal held that the appeal should not have been filed.

What were the facts?

The Revenue filed an appeal against an order of the CIT (Appeals). The assessee pointed out that the tax effect in the appeal was below Rs. 10 lakhs, making it not maintainable as per CBDT Circular No. 21/2015.

What were the issues?

Whether an appeal filed by the Revenue is maintainable when the tax effect is below the threshold specified in CBDT Circular No. 21/2015, which is applicable retrospectively.

Which sections of the Income-tax Act were involved?

Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

For Appellant: Shri B. S. Bist, Sr. DR
For Respondent: Shri Deepak Mehta, AR

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI RAJESH KUMAR, AM (A.Y:2011-12) Vs. Shri Deepak B. Shah, 2 nd The Income Tax Officer, Ward 3 (2), Kalyan, Mumbai floor, Pandurang Niwas, Near Lalit Kala, Mhatre Compound, Dombivli(E) – 01 PAN:APMPS 3916E .. Appellant Respondent Appellant by .. Shri B. S. Bist, Sr. DR Respondent by .. Shri Deepak Mehta, AR Date of hearing .. 19-09-2016 Date of pronouncement .. 19 - 09- 2016 O R D E R PER MAHAVIR SINGH, JM:

This appeal of the Revenue is arising out of the order of the CIT (Appeals)-1, Mumbai in appeal No.944 & 955/14-15 dated 07-07-2015. Assessment was framed by the ITO, Ward 3 (2), Kalyan for assessment year 2011-12 u/s 144 read with section 147 of the Income Tax Act, 1961 (hereinafter “the Act”) vide his order dated 31-01-2015.

2.

At the outset, the learned Counsel for the assessee pointed out that the tax effect in this appeal is below Rs.10.00 lacs. The learned Counsel for the assessee further submitted that in view of the CBDT Circular No.21/2015, dated 10.12.2015 brought out by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, the appeal was not maintainable and be dismissed. The learned Sr. DR also agreed to the facts stated by the learned Counsel for the assessee but could not point out whether this case falls under any of the exception provided in the Circular.

3.

We have heard the rival submissions and perused the material on record. We find from the records before us that the tax involved in the disputed issue/addition of Rs.22,58,960/- comes to Rs.7,13,850/- which is below Rs.10 lacs and therefore, in No. 21/2015 dated 10th December, 2015 no appeal should be filed by the Revenue before the Tribunal which has tax effect of Rs. 10.00 lacs or less and this circular is also applicable retrospectively to all pending appeals. The relevant extract the said CBDT Circular (Supra) is as under:- “This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”

4.

Considering the above, the appeal filed by the Revenue, is therefore, dismissed.

5.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 19-09-2016.

Sd/- Sd/- (RAJESH KUMAR) (MAHAVIR SINGH) ACCONTANT MEMBER JUDICIAL MEMBER Mumbai, Dated: 19-09-2016 Lakshmikanta Deka/Sr.PS

Copy of the Order forwarded to:

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