DCIT CIR 7(1), MUMBAI vs. PEMBRIL INDUSTRIAL AND ENGG. CO P.LTTD, MUMBAI

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ITA 3788/MUM/2014Status: DisposedITAT Mumbai25 May 2016AY 2004-055 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 as the tax effect was below the monetary limit prescribed by CBDT instructions for filing appeals before the ITAT.

What were the facts?

The Revenue appealed an order of the First Appellate Authority. The assessee argued that the appeal was not maintainable due to a low tax effect below the prescribed monetary limit.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal given the low tax effect, as per CBDT instructions.

Which sections of the Income-tax Act were involved?

Section 154

AI-generated summary — verify with the full judgment below

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

Before: Shri Joginder Singh & Shri Rajendra

For Respondent: Shri M.C. Naniwadekar
Hearing: 25/05/2016

आदेश / O R D E R Per Joginder Singh (Judicial Member) The Revenue is aggrieved by the impugned order dated 26/03/2014 of the Ld. First Appellate Authority, Mumbai. The only ground raised in the present appeal is with respect to quashing the order u/s 154 of the Income Tax Act, 1961 (hereinafter the Act), without appreciating the factual and legal matrix.

2.

During hearing, at the outset, the ld. counsel for the assessee, Shri M.C. Nanidwadekar, pointed out that the total tax effect is below prescribed monetary limit of Rs.10 lakh for filing the appeal before this Tribunal.

1.

However, the ld. DR, Shri Ganesh Bare, contended that on merit, the issue is covered against the assessee by the decision of the Tribunal order dated 26/06/2015 for Assessment year 2004-05. However, the ld. counsel for the assessee contended that since the appeal is not maintainable, being low tax effect, therefore, there is no question of going into the merits of the appeal.

M/s Prembril Industrial and Engg. Co. Pvt.Ltd.

2.1. We have considered the rival submissions and perused the material available on record. In view of the above, it is noted that the tax effect in the present appeal is below prescribed limit of Rs.10 lakh for filing the appeal before the Tribunal, as contained in CBDT instruction No.21 of 2015, dated 10/12/2015 (F No.279/Misc./142/2007-IT(PT), applicable with retrospective effect, wherein, the Department was advised/directed by the Board not to file appeal in the cases where the tax effect does not exceed the following monetary limit.:-

Sl. Appeals in Income –tax matters Monetary Limit (in Rs.) No. 1. Before ITAT 10,00,000/- 2. U/s 260 A before Hon’ble High 20,00,000/- Court 3. Before Hon’ble Supreme Court 25,00,000/-

In view of the above instruction, since, the tax effect is less than Rs.10,00,000/-, therefore, without going into the merits of the appeal and considering the aforementioned instruction of CBDT, the appeal of the Revenue is not maintainable, therefore, dismissed.

M/s Prembril Industrial and Engg. Co. Pvt.Ltd.

Finally, the appeal of the Revenue is dismissed as not maintainable.

This order was pronounced in the open in the presence of ld. representatives from both sides at the conclusion of the hearing on 25/05/2016.

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