ITO 20(3)(1), MUMBAI vs. TANCOM ELECTRONICS, MUMBAI

PDF · subscribers
ITA 3975/MUM/2014Status: DisposedITAT Mumbai07 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 tax effect involved in the appeal was below Rs. 10 lakhs. Following a CBDT circular, the Tribunal found the appeal not maintainable on this ground.

What were the facts?

The revenue filed an appeal challenging the deletion of an addition of Rs. 23,19,270/- by the CIT(A). The assessee had declared a total income of Rs. 8,19,540/-, and the Assessing Officer had increased it to Rs. 31,38,810/-.

What were the issues?

The primary issue was whether the appeal filed by the revenue was maintainable given the tax effect involved, considering the monetary limits prescribed by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

Before: SHRI SHAILENDRA KUMAR YADAV, JM & SHRI RAJESH KUMAR, AM

Hearing: 7.6.2016Pronounced: 7.6.2016

O R D E R PER RAJESH KUMAR, A. M: This is an appeal filed by the revenue challenging the order dated 27.3.2014 of ld.CIT(A)31, Mumbai, for assessment year 2009-10 by which the revenue is challenging the deletion of addition of Rs.23,19,270/-.

2.

The facts of the case are that the assessee filed its return of income on 26.09.2009 declaring total income at Rs.8,19,540/-. The case of the assessee was selected for scrutiny and the Assessing Officer after making certain disallowances framed the assessment u/s 143(3) at Rs.31,38,810/-. Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), who in turn deleted 2 3313/Mum/2014 the addition as prayed for by the assessee. Being aggrieved by the order of ld.CIT(A), the revenue is in appeal before us.

3.

At the outset, the ld.Counsel for the assessee submitted that the ld. CIT(A) has deleted the amount of Rs.22,56,336/- under section 14A of the Act, and hence, the tax effect involved in this appeal is 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 ld. AR also submitted that recently, 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.23,19,270/- and the tax effect involved therein is less than Rs.10 lakhs. Therefore, following 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. Order pronounced in the open court on 7.6.2016. sd (SHAILENDRA KUMAR YADAV) (RAJESH KUMAR) न्यधनयक सदस्य / JUDICIAL MEMBER ऱेखध सदस्य / ACCOUNTANT MEMBER म ंबई MUMBAI; ददनधंक DATED : 7.6.2016 Sr.PS:SRL:

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →