ITO WD 21(1)(1), MUMBAI vs. DARSHANA M MEHTA, MUMBAI

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ITA 3520/MUM/2013Status: DisposedITAT Mumbai13 January 2016AY 2008-092 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 Revenue's appeal was not maintainable because the tax effect was below the monetary limit specified in the CBDT Circular. The circular was also held to apply retrospectively to pending appeals.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting a penalty levied under Section 271(1)(c). The assessee argued that the tax effect was below Rs. 10 lakhs, making the appeal not maintainable as per CBDT Circular No. 21/2015.

What were the issues?

Whether an appeal filed by the Revenue is maintainable when the tax effect is below the threshold specified in the CBDT circular, and whether the circular applies retrospectively.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI D. KARUNAKARA RAO & SHRI SANDEEP GOSAIN

For Appellant: Shri B.S. Bist, DR
For Respondent: Shri M. Subrahmanian
Hearing: 13.01.2016Pronounced: 13.01.2016

PER D. KARUNAKARA RAO, AM: This appeal filed by the Revenue on 6.5.2013 is against the order of the CIT (A)-32, Mumbai dated 28.02.2013 for the assessment year 2008-2009. 2. At the outset, Ld Counsel for the assessee brought our attention to the grounds raised by the Revenue which relate to the CIT (A)’s decision in deleting the penalty of Rs. 7,10,363/- levied u/s 271(1)(c) of the Act on the account of interest income. In this regard, he mentioned that the tax effect in this appeal is below Rs. 10 lakhs and therefore, the appeal of the Revenue is not maintainable. In support of his argument, he brought our attention to the recently issued CBDT Circular No.21/2015, dated 10.12.2015 and submitted that the appeals filed by the Revenue with a tax effect of Rs. 10 lakhs and below are to be either dismissed by the Tribunal as not maintainable or not pressed by the Revenue. Referring to the above mentioned Board Circular No.21/2015, Ld Counsel for the assessee brought our attention to para 10 and submitted that the said monetary limitation of Rs. 10

lakhs applies to all the appeals filed by the Revenue retrospectively. Considering the significance of the said para 10 of the CBDT Circular (supra) is extracted as under:- “10. 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.”

3.

Considering the above, the appeal filed by the Revenue, wherein the tax effect is below the above stated tax limit of Rs. 10 lakhs, is dismissed as not maintainable.

4.

In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on 13th January, 2016. (SANDEEP GOSAIN) ACCOUNTANT MEMBER भुंफई Mumbai; ददनांक 13.1.2016 व.नन.स./ OKK , Sr. PS आदेश की प्रतिलऱपि अग्रेपिि/Copy of the Order forwarded to : अऩीराथी / The Appellant 1. प्रत्मथी / The Respondent. 2. 3. आमकय आमुक्त(अऩीर) / The CIT(A)- 4. आमकय आमुक्त / CIT 5. ववबागीम प्रनतननधध, आमकय अऩीरीम अधधकयण, भुंफई / DR, ITAT, Mumbai 6. गार्ड पाईर / Guard file. सत्मावऩत प्रनत ////

आदेशानुसार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt.

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