What did the Tribunal hold?

The Tribunal noted that as per CBDT Circular No. 21/2015, appeals with a tax effect below Rs. 10 lakhs are not to be filed and pending appeals may be withdrawn or not pressed. Therefore, the appeal was held as not maintainable.

The Revenue filed an appeal against the order of the CIT(A) for assessment year 2008-09. During the hearing, the Departmental Representative (DR) submitted that the tax effect was less than Rs. 10 lakhs.

What were the issues?

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

ITO vs Spectrum International P.Ltd | ITAT Mumbai 2016

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

Before: Shri C.N. Prasad, & Shri Ashwani Taneja

For Respondent: Shri Love Kumar (DR)

आदेश / O R D E R Per Ashwani Taneja (Accountant Member):

This appeal has been filed by the Revenue against the order of Ld. Commissioner of Income Tax (Appeals)-7, Mumbai {(in short ‘CIT(A)’}, dated 23.02.2012 for the assessment year 2008-09, passed against the assessment order passed by the Assessing Officer (in short ‘AO’) u/s 143(3) of the Act.

2 Spectrum International Pvt.

During the course of hearing, none appeared on behalf of the Respondent and arguments were made by Shri Love Kumar, Departmental Representative (DR) on behalf of the Revenue.

During the course of hearing, it has been brought to our notice by the Ld. DR that tax effect in this appeal is less than a sum of Rs.10 lakhs, and accordingly, it was submitted that in view of recent circular issued by the Central Board of Direct Taxes No.21/2015 dated 10th December, 2015, this appeal may be treated as withdrawn/not pressed. Ld. DR has also placed a copy of the circular before the bench, 3.1. We have gone through the aforesaid circular of the Board. It has been provided in the aforesaid circular that no appeal shall be filed by the Revenue if the tax effect involved in the appeal does not exceed a sum of Rs. 10 lakhs. It has further been provided that instructions contained therein shall apply retrospectively to pending appeals also. Relevant part of the circular is reproduced below:

“10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunal. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.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.”

3 Spectrum International Pvt.

3.2. In view of the submissions of Ld. DR and circular of the board, we find that the appeal of the Revenue is not maintainable and therefore, it is held that this appeal is not maintainable and dismissed as withdrawn.

In the result, this appeal filed by the Revenue is dismissed.

Order pronounced in the open court on 14th January, 2016.

ITO 3(3)(3), MUMBAI vs. SPECTRUM INTERNATIONAL P.LTD, MUMBAI

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