What did the Tribunal hold?

The Tribunal noted that the tax effect in the appeal was below the Rs. 10 lakh limit for filing appeals before the ITAT, as per CBDT instructions. Therefore, the appeal was not maintainable.

The Revenue filed an appeal before the ITAT. However, the assessee remained absent during the hearing. The Revenue's counsel pointed out that the total tax effect was below the prescribed monetary limit for filing appeals.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT when the tax effect is below the prescribed monetary limit.

DCIT vs Muchhala Magic Land P.Ltd | ITAT Mumbai 2016

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

Before: Shri Joginder Singh, & Shri Ashwani Taneja

For Respondent: Shri Vivek Anand Ojha-DR

Hearing: 03/05/2016

आदेश / O R D E R

Per Joginder Singh (Judicial Member) The Revenue is aggrieved by the impugned order dated 31/07/2014 of the First Appellate Authority, Mumbai.

During hearing of this appeal, none was present on behalf of the assessee in spite of issuance of registered AD notice, therefore, we have no option but to proceed ex-parte, qua the assessee, and tend to dispose of the appeal on the basis of material available on record. However, at the outset, the ld. DR, Shri Rajguru, brought to our notice that the total tax effect is below prescribed monetary limit of Rs.10 lakh for filing the appeal before this Tribunal.

2.1. We have considered the submissions of the ld. DR and perused the material available on record. In view of the above, it is noted that after providing relief to the assessee by the Commissioner of Income Tax (Appeal), the tax effect in the present appeal remained 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/-, consequently, the appeal of the Revenue is not maintainable, therefore, dismissed. Finally, the appeal of the Revenue is dismissed as not maintainable. This order was pronounced in the open court in the presence of ld. DR at the conclusion of the hearing on 28/04/2016.

Sd/- Sd/- (Ashwani Taneja) (Joginder Singh) लेखा सद�य / ACCOUNTANT MEMBER �या�यक सद�य / JUDICIAL MEMBER मुंबई Mumbai; �दनांक Dated : 03/05/2016 f{x~{tÜ? P.S/.�न.स. आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. आयकर आयु�त(अपील) / The CIT, Mumbai. 4. आयकर आयु�त / CIT(A)- , Mumbai 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, मुंबई / DR, ITAT, Mumbai 6. गाड� फाईल / Guard file.

DCIT 8(2), MUMBAI vs. MUCHHALA MAGIC LAND P.LTD, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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