ACIT 24(1), MUMBAI vs. ANIL L SHAH, MUMBAI

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ITA 4995/MUM/2013Status: DisposedITAT Mumbai06 May 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 noted that the tax effect of the disputed amount was below the monetary limit for filing appeals as per CBDT Circular No. 21 of 2015. Therefore, the appeal was not maintainable.

What were the facts?

The Revenue appealed against the CIT(A)'s order restricting an addition made under Section 14A. The amount in dispute was Rs. 14,93,971/-.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT due to the low tax effect, as per CBDT guidelines.

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 BENCHES “A”, MUMBAI

Before: SHRI G.S.PANNU (AM) & SHRI RAM LAL NEGI (JM)

For Appellant: Shri. S.R.Singh
For Respondent: Shri. Toral Shah
Hearing: 06/05/2016Pronounced: 06/05/2016

This appeal has been filed by the revenue against order dated 17/04/2013 passed by the Ld CIT(A)-34, Mumbai for the assessment year 2009-10.

2.

The revenue has challenged the impugned order on following ground:- 1. On the facts in the circumstances of the case and in law, the Ld. CIT(A) erred in restricting the addition of Rs. 14,93,971/- made by the AO u/s u/s 14A r.w.s. 8D on the exempted income to 2% of the disallowance when the relief allowed to the assessee was not in conformity with section u/s 14A r.w.s. 8D.

3 At the outset , the Ld. DR pointed out that the amount of addition in dispute is only Rs. 14,93,971/- and the tax effect on this amount is below the specified monetary limit of Rs. 10 lakhs. As per the latest CBDT Circular No. 21 of 2015, dated 10th December, 2015, new guidelines of monetary limit for filing of appeals by the Department has been issued, whereby the tax effect for filing of appeal before the ITAT has been prescribed at Rs. 10 lakhs. It has been specifically clarified in the said instruction will apply retrospectively to all the pending appeals. The issue involved in this appeal does not fall under any of the exceptions specified under para 8 of the said circular. Accordingly, the appeal filed by the revenue is not maintainable. We, therefore, dismiss the same in limine.

Order pronounced in the open court on 6th May, 2016

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