What did the Tribunal hold?

The Tribunal held that as per CBDT instructions, appeals with a tax effect below Rs. 10 lakh are not maintainable before the ITAT. Therefore, the appeals filed by the Revenue were dismissed.

The Revenue filed a bunch of twenty-seven appeals challenging the orders of the First Appellate Authority. It was brought to the Tribunal's notice that the tax effect in each appeal was below the prescribed monetary limit.

What were the issues?

The primary issue was the maintainability of the Revenue's appeals before the ITAT due to the tax effect being below the prescribed monetary limit set by CBDT circulars.

ACIT vs Ashwin Purshotam Bajaj | ITAT Mumbai 2015

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: Shri Joginder Singh, & Shri Jason P. Boaz

For Appellant: Ms. N.V. Nadkarni, Shri J

For Respondent: Shri Jeevanlal

Hearing: 22/12/2015

आदेश / O R D E R

Per Bench This bunch of twenty seven 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 not controverted 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.

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 facts with respect to prescribed monetary limit, more specifically on behalf of the Revenue, 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 22/12/2015.

ACIT 19(1)(2), MUMBAI vs. ASHWIN PURSHOTAM BAJAJ, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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