DCIT 10(1), MUMBAI vs. SHAILEE CAPITAL SERVICES P.LTD, MUMBAI

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ITA 2327/MUM/2014Status: DisposedITAT Mumbai17 June 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 held that the appeal was not maintainable due to low tax effect, as the tax effect was below the prescribed limit of Rs. 10 lacs. The Tribunal dismissed the appeal without expressing any opinion on the merits of the case.

What were the facts?

The Revenue appealed against the deletion of additions made by the AO under Section 14A read with Rule 8D. The respondent argued that the appeal should be dismissed due to low tax effect as per CBDT Circular No. 21 of 2015.

What were the issues?

Whether the appeal filed by the Revenue is maintainable on account of low tax effect as per CBDT Circular No. 21 of 2015.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI “E” BENCH, MUMBAI

Before: SHRI SHAILENDRA KUMAR YADAV, JUDICIAL & SHRI RAJESH KUMAR.

Hearing: 16.06.2016Pronounced: 17.06.2016

अपीलाथ� क� ओर से /By Appellant : Shri Vinod Kumar, D.R. ��यथ� क� ओर से/By Respondent : Shri Bhupendra Shah, A.R. सुनवाई क� तार�ख/Date of Hearing : 16.06.2016 घोषणा क� तार�ख/Date of Pronouncement : 17.06.2016 ORDER PER SHAILENDRA KUMAR YADAV, J.M: This appeal has been filed by Revenue against the order of Commissioner of Income-Tax (Appeals)-21, Mumbai, dated 22.01.2014 for A.Y. 2009-10 on following ground:

A.Y. 09-10 [DCIT vs. M/s. Shailee Capital Services P. Ltd.] Page 2

“1. On the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in deleting the additions of Rs.15,64,158/- made by the AO applying section 14A r.w.r. 8D of the IT Rules, 1962.”

2.

Before us, at the outset, ld. Authorized Representative submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the CBDT Circular No.21 of 2015 dated 10.12.2015. The ld. Departmental Representative fairly admitted that the tax effect is less than the limit prescribed by the aforesaid CBDT Circular.

2.1 We have heard the ld. D.R. and perused the material on record. On perusing the grounds of appeal raised by the Revenue, we find that Revenue is aggrieved by deletion of addition of Rs.15,64,158/- the tax effect of which is below Rs.10 lacs. As per the announcement of Central Board of Direct Taxes (CBDT) dated 10.12.2015 (Circular No. 21 of 2015), no Department appeals are to be filed against relief given by ld. CIT(A) before the Income Tax Tribunal unless the tax effect, excluding interest exceeds Rs. 10 lacs and it further states that the instructions will apply retrospectively to the pending appeals. In the present case, since it is an undisputed fact that on the additions which are in dispute, the tax effect is less than Rs. 10 lacs and in the absence of any material on record by the Revenue to demonstrate that the issue in the present appeal is covered by exemptions specified in clause (8) of the aforesaid CBDT Circular, we are of the view that the monetary limit prescribed by the instructions of the aforesaid A.Y. 09-10 [DCIT vs. M/s. Shailee Capital Services P. Ltd.] Page

3. CBDT Circular would be applicable to the present appeal of the Department and therefore the present appeal is not maintainable on account of low tax effect. However, in case there is any error in the computation of the tax effect involved or if for any reason, the aforesaid CBDT Circular is not applicable, it would be open to the Revenue to seek revival of the appeal. In such circumstances, we dismiss the appeals of Revenue without expressing any opinion on merits of the case.

3.

In the result, the appeal of Revenue is dismissed.

Pronounced in the open Court on this the 17th day of June, 2016.

Sd/- Sd/- (RAJESH KUMAR) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai: Dated 17/06/2016 True Copy S.K.SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, मुंबई / DR, ITAT, Mumbai 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार, आयकर अपील�य अ�धकरण, मुंबई ।

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