ITO 20(1)(2), MUMBAI vs. BHARGAVA HOME INDUSTRIES, MUMBAI

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ITA 2792/MUM/2013Status: DisposedITAT Mumbai29 August 2016AY 2008-093 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 dismissed the revenue's appeal as not maintainable due to low tax effect. The assessee's cross-objection was also dismissed as it was supportive of the CIT(A)'s order and the assessee did not wish to pursue it after the revenue's appeal was dismissed.

What were the facts?

The revenue filed an appeal before the ITAT, Mumbai, against the order of the CIT(A). The tax effect involved in the appeal was found to be below the limit prescribed by the CBDT circular for low tax effect appeals.

What were the issues?

Whether an appeal with a low tax effect, below the prescribed limit, is maintainable before the Tribunal. Whether the assessee's cross-objection needs to be adjudicated if the primary appeal is dismissed.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 254(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI “B” BENCH

For Respondent: Smt. Vinita Menon-AR, Shri Chetan A. Karia
Hearing: 29.08.2016Pronounced: 29.08.2016

Order u/s 254(1) of the Income-tax Act, 1961(the Act) O R D E R �याियक सद�य के अनुसार Per Mahavir Singh,JM : This appeal by the revenue and the Cross Objection by the assessee are arising out of the order of CIT(A)-31,Mumbai in Appeal No.CIT(A)-31/IT-244/ITO-20- (1)(2)/10-11 order dated 09.01.2013. Assessment was framed by ITO Ward-20(1)(2), Mumbai, u/s 143(3) of the Income tax Act, 1961 (hereinafter ‘the Act’) for the assessment year 2008-09 vide his order dated 27.12.2010.

1.

2792/M/13-C.O.133/14 Bhargava Home Industries 2. At the outset, it is noticed that the total quantum of addition involved in this appeal of revenue is only Rs.16,74,831/- and the tax effect is amounting to Rs.5,02,450/-, which is below the limit prescribed in the low tax effect circular i.e. CBDT Circular No.21/2015(F.No.279/Misc. 142/2007-ITJ (Pt.) dated 10th December, 2015.

3.

The Departmental Representative (DR) and Authorised Representatives (AR),who appeared before the Bench, fairly conceded that the tax involved in the above appeal was less than Rs.10.00 lacs. On query from the bench Ld. SR DR could not state whether this appeal falls under any of the exceptions as provided in the above said circular. Considering these facts, we dismiss the appeal holding the same as not maintainable.

4.

The CO No.133/M/2014 of the assessee is only supportive of the order of CIT(A) and the assessee is also making alternative submissions but the ld. Counsel for the assessee stated that, once revenue’s appeal is dismissed due to low tax effect, he is not interested in pursuing the C.O. Hence, the same is dismissed. In the result, the appeal of the revenue as well as the C.O. of the assessee is dismissed. Order pronounced in the open court on 29th August, 2016 आदेश क� घोषणा खुले �यायालय म� �दनांक 29 अग�त, 2016 को क� गई । Sd/- Sd/- (बी.आर. बा�करन / B.R. Baskaran) (महावीर �सह / Mahavir Singh ) लेखा लेखा लेखा सद�य लेखा सद�य सद�य / ACCOUNTANT MEMBER �याियक सद�य / JUDICIAL MEMBER सद�य मुंबई/Mumbai,�दनांक/Date: 29.08.2016 व.िन.स.Jv.Sr.PS.

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