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 also applied retrospectively to pending appeals.

The Revenue filed an appeal against the CIT(A)'s order deleting a disallowance related to commission paid to non-residents without TDS. 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 the Revenue's appeal is maintainable given the tax effect is below the prescribed monetary limit by the CBDT, and the retrospective applicability of the circular.

DCIT vs R.S. Prakash Associates | ITAT Mumbai 2016

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI D. KARUNAKARA RAO & SHRI SANDEEP GOSAIN

For Appellant: Shri Sujit Bangar, DR

For Respondent: Shri Shiv Prakash

Hearing: 06.01.2016Pronounced: 06.01.2016

PER D. KARUNAKARA RAO, AM: This appeal filed by the Revenue on 20.6.2014 is against the order of the CIT (A)-33, Mumbai dated 31.3.2014 for the assessment year 2009-2010. 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 disallowance of Rs. 23,47,684/- made on account of „payment of commission to non- residents without TDS‟. 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 Pending appeals below the specified tax limits in para 3 above may be withdrawn / not pressed.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.”

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.

In the result, appeal of the Revenue is dismissed. Order pronounced in the open court 6th January, 2016. (SANDEEP GOSAIN) ACCOUNTANT MEMBER भुंफई Mumbai; ददनांक 6.1.2016 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.

DCIT 22(2), NAVI MUMBAI vs. R.S. PRAKASH ASSOCIATES, MUMBAI

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