What did the Tribunal hold?

The Tribunal held that in view of the CBDT instructions and the revised monetary limits, appeals with a tax effect below Rs. 10,00,000/- are not maintainable before the ITAT.

The Revenue filed a bunch of nine appeals before the ITAT. The tax effect in each of these appeals was below the prescribed monetary limit for filing appeals.

What were the issues?

The primary issue was whether the appeals filed by the Revenue were maintainable given the low tax effect, considering the CBDT's monetary limits for appeals.

ITO vs Hotel Vishal Resorts, Shahapur | ITAT Mumbai 2015

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: Shri Joginder Singh, & Shri D. Karunakar Rao

For Respondent: Shri Sujit Bangar-DR

Hearing: 29/12/2015

आदेश / O R D E R

Per Bench This bunch of nine appeals is by the Revenue in the cases of different assessees challenging the impugned respective order of different dates, passed by the ld. First Appellate Authority, Mumbai.

At the outset, it was brought to our notice that the tax effect in the respective appeal is below prescribed monetary limit. This factual matrix was consented to be correct by the respective ld. DR.

2.1. We have considered the rival submissions and perused the material available on record. We note that the tax effect in the respective appeal is below the prescribed monetary limit of Rs.10 lakh.

2.2. In view of the fact that the tax effect in the respective appeal is below prescribed monetary limit, as contained in CBDT instruction No.3/2011 dated 09/02/2011, further instruction No.5/2014 (F No.279/Misc./142/2007- IT(PT) dated 10/07/2014, the CBDT revised the monetary limit for filing the appeal before various Authorities/Courts vide CBDT Circular No.21 of 2015, dated 10/12/2015 (F No.279/Misc./142/2007-IT(PT), with retrospective effect and advised/directed the Department 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, these appeals of the Revenue are not maintainable. Therefore, in view of uncontroverted contention of the ld. DR and the aforementioned circular of CBDT, the appeals of the Revenue are dismissed as not maintainable.

Finally, the appeals of the Revenue are dismissed as not maintainable. This order was pronounced in the open court in the presence of the ld. representative from both sides at the conclusion of the hearing on 29/12/2015.

ITO WD 2(5), KALYAN vs. HOTEL VISHAL RESORTS, SHAHAPUR

What did the Tribunal hold?

What were the facts?

What were the issues?

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