ITO 18(3)(3), MUMBAI vs. MAHAPALIKA MADHYAMIK SHIKSHAK SAHAKARI PAT SANSTHA MARYADIT, MUMBAI

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ITA 4516/MUM/2014Status: DisposedITAT Mumbai29 July 2016AY 2009-103 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 noted that as per CBDT circular, no appeal should be filed if the tax effect does not exceed Rs. 10 Lacs. Therefore, the appeal filed by the Revenue was not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT for the assessment year 2009-10. The Departmental Representative confirmed that the tax effect in the appeal was less than Rs. 10,00,000/-.

What were the issues?

Maintainability of the appeal by the Revenue due to low tax effect, considering the binding nature of CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 254

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “B”, MUMBAI

Before: SHRI R.C. SHARMA(AM) & SHRI SANDEEP GOSAIN (JM)

For Appellant: Shri. Randhir Gupta
Hearing: 26/07/2016Pronounced: 29/07/2016

The present appeal has been filed by the Revenue against the order of Ld. Commissioner of Income Tax (Appeals)-29, Mumbai, dated 21/04/2014 for the assessment year 2009-10.

2.

None appeared on behalf of the Assessee but Shri Randhir Gupta, Departmental Representative (DR) is present on behalf of the Revenue.

3.

It is noted by us that tax effect in this case is apparently less than Rs. 10,00,000/-.

3.1. We have gone through the aforesaid circular of the Board. It has been provided in the aforesaid circular that no appeal shall be filed by the Revenue if the tax effect involved in the appeal does not exceed a sum of Rs. 10 Lacs. It has further been provided that instructions contained therein shall apply retrospectively to pending appeals also. Relevant part of the circular is reproduced below:

“10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunal. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.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.”

3.2. It is confirmed by the Ld. DR that tax effect in this case is less than the amount of Rs.10,00,000/-. As per law, circular of CBDT has binding effect on the income tax authorities.

3.3. In view of the above, we find that the appeal of the Revenue is not maintainable. Therefore, we dismiss the same.

3.4. However, with a view to follow principles of natural justice, we give liberty to the Revenue to file Miscellaneous Application u/s 254 in case tax effect is found to be more than Rs. 10,00,000/-. Further, our order shall have no bearing on the merits of the case. 4. In the result, the appeal of the Revenue is dismissed.

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