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Income Tax Appellate Tribunal, “G”, BENCH MUMBAI
Before: SHRI RAJENDRA, AM & SHRI RAM LAL NEGI, JM
आदेश / O R D E R
PER RAM LAL NEGI, JM
This appeal has been filed by the revenue against order dated 28/10/2014 passed by the Ld. CIT (Appeals)-2, Mumbai for the assessment year 2010-11.
The revenue has challenged the impugned order on the following effective grounds:-.
(i) “Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in allowing carry forward of losses claimed by assessee ignoring the fact that under the principle of mutuality followed by the assessee for claiming receipts exempt from tax there can be no income chargeable to tax and consequently no loss assessable which can legally be allowed to be carried forward ?’
(ii)” Whether on the facts and in the circumstances of the case and in law, the Ld. CIT (A) was justified in allowing carry forward of losses claimed by assessee ignoring the fact for an organization governed by mutuality there are no profits or losses but only receipts and payments and, any surplus of expenses over receipts is only a deficit and not “losses” which, if so claimed, would amount to an accounting camouflage only.”
At the outset, the Ld. Counsel for the assessee submitted that the tax effect in this case is below Rs. 10,00,000/- Hence, as per the CBDT Circular No. 21 of 2015, dated 10/12/2015, the present appeal is not maintainable.
The Ld. DR fairly admitted that the tax effect in department’s appeal is below Rs. 10 Lakhs, We find that the issue raised in appeal does not fall under any of the exceptions specified in para 8 of the Circular. Since, it has been specifically clarified in the Circular aforesaid that the instruction will apply retrospectively to all the pending appeals; the present appeal filed by the revenue is not maintainable. We, therefore, dismiss the same in limine.