ITO WD 11(3)(1), MUMBAI vs. DR. MULTANMAL SHARMA, MUMBAI

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ITA 2256/MUM/2013Status: DisposedITAT Mumbai22 January 2016AY 2008-094 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 was below the threshold specified in CBDT Circular No. 21/2015. Both parties agreed that the appeal was not maintainable based on this circular.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting an addition made under Section 54. The assessee pointed out that the tax effect was below Rs. 10 lakhs.

What were the issues?

Maintainability of the appeal before the Tribunal due to low tax effect as per CBDT circular.

Which sections of the Income-tax Act were involved?

Section 54

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI AMIT SHUKLA, JM & SHRI RAJESH KUMAR, AM

For Appellant: Shri Piyush Chaturvedi

आदेश / O R D E R PER RAJESH KUMAR, A. M: This appeal by the revenue is directed against the order dated 29.01.2013 of Commissioner of Income Tax (Appeals)-2, Mumbai (hereinafter called as the CIT(A) ) for assessment year 2008-09. The revenue has raised following grounds of appeal:

1.

1. “On the facts and in the circumstances of the case and in law, whether the Ld. CIT(A) was justified in directing the A.O. to delete the addition of Rs.15,82,744/- u/s.54.”

2.

At the outset the ld. AR of the assessee pointed out that the tax effect in this appeal is below Rs.10.00 lakhs and further submitted that in view of the CBDT Circular No.21/2015, dated 10.12.2015 brought out by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, the appeal was not maintainable and be dismissed. The ld. DR also agreed to the submission of the ld. AR.

3.

We have heard the rival submissions and perused the material on record.

We find from the records before us that the tax involved in the disputed issue is below Rs.10 Lacs and therefore, in view of the circular no 21/2015 dated 10th December, 2015 no appeals should be filed by the Revenue before the Tribunal which has tax effect of Rs. 10.00 lacs or less and this circular is also applicable retrospectively to all pending appeals.

The relevant extract the said CBDT Circular (Supra) is as under:- “This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”

4.

Considering the above, the appeal filed by the Revenue, is therefore dismissed. In the result, the appeal of the Revenue is dismissed.

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