What did the Tribunal hold?

The Tribunal noted that the tax effect was below the monetary limit specified by the CBDT for filing appeals before the ITAT. Therefore, the appeal was not maintainable.

The Revenue filed an appeal before the ITAT. The assessee pointed out that the tax effect in the appeal 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 as per CBDT instructions.

DCIT vs Axis Capital Ltd | ITAT Mumbai 2016

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

For Respondent: Shri Aarsi Prasad, Shri P. P. Bhandan

Hearing: 10/02/2016

Per Joginder Singh (Judicial Member) The Revenue is aggrieved by the impugned order dated 27/12/2013, of the ld. First Appellate Authority, Mumbai.

During hearing of this appeal, the ld. counsel for the assessee, Shri P. P. Bhandan, at the outset, brought to our notice that the tax effect in the present appeal is below prescribed monetary limit. This factual matrix was not controverted by the ld. DR, Shri G.N. Makwana.

2.1. We have considered the rival submissions and perused the material available on record. It is noted that the addition made in the present appeal is Rs.12,86,854/-, which is below prescribed limit of Rs.10 lakh for filing the appeal before the Tribunal.

2.2. In view of the fact, that the tax effect in the appeal is below prescribed monetary limit, as contained in CBDT instruction No.21 of 2015, dated 10/12/2015 (F No.279/Misc./142/2007-IT(PT), 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/-

As per the aforesaid instruction/revised monetary limit, the Department is not to file appeal before the Tribunal, wherein, the tax effect is less than Rs.10,00,000/-, consequently, the appeal of the Revenue is not maintainable. Therefore, in view of uncontroverted contention of the ld. DR and the aforementioned Circular no. 21 of 2015, dated 10/12/2015 (F No.279/Misc./142/2007-IT(PT), of CBDT, the appeal of the Revenue is dismissed as not maintainable. Finally, the appeal of the Revenue is dismissed as not maintainable. This Order was pronounced in the open court in the presence of ld. representative from both sides at the conclusion of the hearing on 10/02/2016.

DCIT CIR 3(1), MUMBAI vs. AXIS CAPITAL LTD, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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