What did the Tribunal hold?

The Tribunal held that the Revenue's appeal was not maintainable because the tax effect was below the threshold specified in the CBDT instruction. The instruction stipulated that appeals with a tax effect below Rs. 10 Lacs should not be filed.

The Revenue filed an appeal before the ITAT against the order of the CIT(A). The assessee argued that the appeal was not maintainable due to low tax effect, citing a CBDT instruction.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT based on the tax effect, in light of a CBDT instruction.

ITO vs Samir K. Patel HUF | ITAT Mumbai 2015

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: SHRI A.K. GARODIA, AM

For Appellant: Ms. Aarti Sathe

आदेश / O R D E R PER A. K. GARODIA, A. M:

This appeal is filed by the revenue and it is directed against the order of Commissioner of Income Tax (Appeals)-29, Mumbai (Hereinafter called as the CIT(A) ) dt. 25/04/2014 for assessment years 2005-06.

At the very outset, it was submitted by the Ld. AR of the assessee that this appeal of the revenue is not maintainable because of low tax effect in the light of the recent board instruction dt. 10/12/15 as per which, it is specified that the revenue is not supposed to file any appeal before the tribunal where the tax effect is below Rs. 10 Lacs.

ITA 4679/MUM/2014 Assessment Year: 2005-06 3.

Thereafter, he pointed out that this instruction are applicable to pending appeals also as specified in the instructions itself. Thereafter, pointed out in the present case, the assessed income is below Rs. 10 Lacs, and therefore, the tax effect is bound to be much below Rs. 10 Lacs. Ld. DR of the revenue had nothing to say.

2. I have considered the facts of the present and I find that in view of the recent board instruction dt. 10/12/2015, this appeal of the revenue is not maintainable because of low tax effect since in the present case, the assessed income itself is below Rs. 10 Lacs. Therefore, tax effect on account of relief granted by the Ld. CIT(A) cannot be more than Rs. 10Lacs.

Hence, I hold that the appeal of the revenue is not maintainable because of low tax effect.

In the result, appeal of the revenue is dismissed.

Order pronounced in the open court on 22nd December, 2015

ITO 17(2)(2), MUMBAI vs. SAMIR K. PATEL HUF, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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