ITO 16(1)(3), MUMBAI vs. H.R. KHATAU, MUMBAI

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ITA 4345/MUM/2014Status: DisposedITAT Mumbai22 February 2016AY 1995-962 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 filed by the Revenue was not maintainable. This was because the quantum of dispute and the tax effect were below the monetary limit prescribed by the CBDT for filing appeals before the ITAT.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order concerning the set off of sales of shares as Long Term Capital Loss against Long Term Capital Gain. The transaction involved selling shares at a significantly lower price than the purchase cost within the family.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT based on the monetary limit prescribed by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: SHRI B.R.BASKARAN (AM) & SHRI RAM LAL NEGI (JM)

For Appellant: Shri. Chandra Vijay
For Respondent: Shri. Rajesh P. Shah
Hearing: 22/02/2016Pronounced: 22/02/2016

The aforesaid appeal has been filed by the Revenue against impugned order dated 12/03/2014 passed by the CIT(Appeals)-5, Mumbai in respect of the order of assessment passed u/s 143(3) for the assessment year 1995-96, on the following grounds:-

1. Whether on the facts and circumstances and in law, the Ld. CIT(A) was justified in allowing the set off of sales of shares as Long Term Capital Loss against the Long Term Capital Gain at the rate of Rs. 1 per share (sale price) as against the purchase cost of Rs.18.50 per share by the assessee by using colourable device. The said transaction was made within the family for a worthless price.

2. The appellant craves leave to amend or alter any ground or add a new ground that may be necessary.

2.

At the outset, it is noticed that, the quantum in dispute is only Rs. 32,37,500/- (Long Term Capital Gain) 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. In the said Circular, it has been specifically clarified that the said instruction will apply retrospectively to all the pending appeals. Accordingly, the appeal filed by the revenue is not maintainable and is dismissed in limine.

Order pronounced in the open court on 22th February, 2016

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