Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, MUMBAI BENCHES “A”, MUMBAI
Before: SHRI G.S.PANNU (AM) & SHRI RAM LAL NEGI (JM)
The present appeal has been filed by the revenue against order dated 13/08/2013 passed by the Ld. CIT(Appeals)-27 Mumbai for the Asst. Year 2009-10.
The revenue has challenged the impugned order on the following effective grounds of appeal:-
1. Whether on facts and circumstances of the case and in law, Ld CIT(A) has erred in deleting the disallowance u/s 14A read with rule 8D of the Act of Rs. 18,70,271/-
2. Whether on facts and circumstances of the case and in law, Ld CIT(A) has erred in deleting the disallowance u/s 14A read with rule 8D of the Act of Rs. 18,70,271/- and restricting the same to Dividend earned at Rs. 2,57,193/- in contravention of u/s 14A?
The Ld. Counsel for the assessee submitted that the tax effect in this case is below Rs.10,00,000/- as the total disallowance made by the AO u/s 14A read with rule 8D of the Income Tax Rules 1962 is Rs. 18,70,271/-. 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.
Order pronounced in the open court on 22nd July, 2016