ITO (E) 2(2), MUMBAI vs. SHRI PRAYAGDHAM TRUST, MUMBAI

This appeal is filed by the revenue and the Cross Objection is filed by the assessee and these are directed against the order of Commissioner of Income Tax (Appeals)-7, Mumbai (Hereinafter called as the CIT(A) ) dt. 18/03/2015 for assessment years 2007-08.

At the very outset, it was submitted by the Ld. AR of the assessee that in the present case, even after making disallowance by the AO in respect of the depreciation, assessed income is NIL and therefore, the tax effect in the present case is below the specified limit as per the recent board instructions dt. 10/12/2015, as per which, it is specified that the revenue is not supposed to file any appeal before the tribunal

At the juncture, it was pointed out that if the appeal of the revenue goes by holding that it is not maintainable then CO of the assessee also not survive. In reply, the Ld. AR of the assessee agreed to this proposition. Ld. DR of the revenue had nothing to say and he could not show that the tax effect in the present case is not below Rs. 10 Lacs.

I have considered the facts of the present case as discussed above and I find that in view of the recent board instructions dt. 10/12/2015, an appeal of the revenue is not maintainable because of low tax effect if the tax effect is below Rs. 10 lacs and the present appeal is such because in the present case, tax effect is below Rs. 10 lacs and as a consequences, CO of the assessee also goes because in the absence of a valid appeal of the revenue, CO of the assessee is also not maintainable. Accordingly both are dismissed as not maintainable because of low tax effect.

In the result, the revenue’s appeal & Cross Objection of the assessee are dismissed.