DCIT (OSD) 2(3), MUMBAI vs. SAHARA INVESTMENT P.LTD, MUMBAI

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ITA 5306/MUM/2013Status: DisposedITAT Mumbai29 February 2016AY 2007-083 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 dismissed the Department's appeal as not maintainable. This was based on the CBDT circular regarding monetary limits for appeals, which was applicable retrospectively to pending appeals.

What were the facts?

The Department appealed the CIT(A)'s order, raising grounds related to a Section 154 order and disallowance under Section 14A for book profit computation. Both parties agreed the tax effect was below the CBDT's monetary limit for appeals.

What were the issues?

Whether the Department's appeal was maintainable given the tax effect and CBDT circular. The applicability of Section 14A disallowance for book profit computation was also raised but not decided due to the dismissal.

Which sections of the Income-tax Act were involved?

Section 154,Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI RAMIT KOCHAR

For Appellant: Shri Nimesh Jain
For Respondent: Shri A. Ramchandran, Shri Nimesh Jain

Instant appeal of the Department is directed against the order dated 2nd May 2013, passed by the learned Commissioner (Appeals)– 6, Mumbai, for the assessment year 2007–08. Following grounds have been raised by the Department:–

1.

On the facts and in the circumstances of the case and in law, the learned Commissioner (Appeals) erred in passing an order u/s. 154 of the IT Act as there is no mistake apparent

2 M/s. Tayabi Tags from the record i.e order u/s.250 of the IT Act passed by the Ld. CIT(A) on 17.12.2012. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that disallowance u/s.14A of the IT Act for the computation of book profit should also be restricted to disallowance made u/s.14A of the said section under normal computation of income.

2.

At the outset, both the parties agreed before us that the tax effect pertaining to the amounts disputed by the Department is less than the monetory limit of ` 10 lakh fixed by the CBDT in Circular no.21 of 2015 dated 10th December 2015, in relation to appeal before the Income Tax Appellate Tribunal. Taking into consideration the aforesaid submissions of the learned Departmental Representative and also finding that the CBDT circular under reference applies retrospectively, even to pending appeals, we dismiss the appeal of the Department as not maintainable.

3.

In the result, appeal stands dismissed. Order pronounced in the open Court on 29.02.2016

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