DCIT CEN CIR 14, MUMBAI vs. SNEHA SURENDRA BARMECHA, GUJRAT

The facts of the case are that the assessee filed its return of income on 24.9.2010 declaring total income at Rs.2,09,793/-. The case of the assessee was selected for scrutiny and the statutory notices were issued to the assessee u/s 143(2) and 142(1) and served upon the assessee. The Assessing Officer after making 2 7445/Mum/2013 certain disallowances and addition framed the assessment u/s 143(3) at Rs.13,88,000/- which includes Rs.4863/- on account of speculation profit, exchange loss Rs.11,78,225/-profit, interest etc. Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), who in turn deleted the addition as prayed for by the assessee. Being aggrieved by the order of ld.CIT(A), the revenue is in appeal before us.

At the outset, we would like to point out that ld. CIT(A) has deleted the amount of Rs.11,19,149.03 on account of exchange loss in the assessment year under consideration and liberty to allow balance exchange loss of Rs.3,57,946/- is to be set off in the year when the inv. No.9/210 finally remitted. Therefore, the tax effect involved in this appeal remains below Rs.10 lacs. Even considering the addition made by the AO, the tax effect involved in this appeal is below Rs.10 lakhs. The Central Board of Direct Taxes, has issued a Circular bearing No.21/2015 dated 10.12.2015 prescribing new monetary limit of Rs.10.00 lakhs for preferring appeal against the orders passed by Ld CIT(A) before the Tribunal. According to the above said circular, the revenue is precluded from pursuing this appeal, as the said circular has retrospective effect and is applicable to the existing appeals also. Accordingly, we have heard the ld. DR and perused the material on record. We find that the quantum in dispute is Rs.11,19,149.03 and the tax effect involved therein is less than Rs.10 lakhs. Therefore, in view of the instruction issued by CBDT, we find that tax effect involved in this appeal is less than Rs.10 lakhs and therefore, this appeal is not maintainable. Accordingly, we dismiss the appeal of the revenue being below Rs.10 lakhs. 4. In the result, the appeal of the revenue is dismissed.