ITO 21(3)(1), MUMBAI vs. BAKULA HEMATLAL BADANI, MUMBAI

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ITA 7063/MUM/2013Status: DisposedITAT Mumbai14 January 2016AY 2005-062 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 tax effect of the disputed additions was below the threshold specified in the CBDT Circular No. 21 of 2015. Therefore, the appeal of the Revenue was not maintainable.

What were the facts?

The Revenue filed an appeal against the deletion of additions made to the assessee's income. The additions were Rs. 16,07,145/- as income from undisclosed sources and Rs. 8,036/- as commission payable.

What were the issues?

Whether the Revenue's appeal is maintainable given the tax effect is below the CBDT circular limit.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI

Before: SHRI AMIT SHUKLA & SHRI RAJESH KUMAR

For Appellant: Shri Naveen Gupta (DR)
For Respondent: Shri Navin B. Gandhi
Hearing: 14/01/2016Pronounced: 14/01/2016
1.

The aforesaid appeal has been filed by the Revenue against the impugned order dt. 6.9.2013, passed by CIT(A)-22, Mumbai for the quantum of assessment passed u/s 143(3) r.w.s 147 for the A.Y 2005-06. In the grounds of appeal, the Revenue has challenged the deletion of addition of Rs.16,07,145/- as income from undisclosed sources and Rs. 8,036/- being commission payable for taking accommodation entries.

2. At the outset, the ld. Counsel for the Assessee submitted that, the tax effect on the disputed additions are much less than Rs. 10 lacs, therefore, in view of the latest CBDT Circular No. 21 of 2015 dt. 10.12.2015, the appeal of the Revenue should be held to be not maintainable. The ld. DR also admitted that the tax effect is less than Rs. 10 lacs.

3. After considering the tax effect on the disputed additions, we find that it is much below Rs. 10 lacs and, therefore, in view of CBDT circular (supra) the appeal of the Department is treated to be not maintainable. The relevant para no. 10 of the CBDT circular specifically provides that the said instructions shall apply retrospectively, which for the sake of ready reference is reproduced hereinbelow.

“10. This instruction will apply retrospectively to pending 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.

Accordingly, the appeal of the Revenue is treated as dismissed.

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

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