ITO (IT)2(1)(1), MUMBAI vs. VIRENDRA VINAMALIDAS DHAKAN,

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ITA 1347/MUM/2015Status: DisposedITAT Mumbai21 December 2015AY 2006-079 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that in view of the CBDT Circular No. 21 of 2015, appeals with a tax effect below Rs. 10 lakhs are not maintainable. Therefore, the appeals were dismissed as not pressed.

What were the facts?

The revenue filed a bunch of 24 appeals before the ITAT. It was observed that the tax effect in these appeals was less than the monetary limit of Rs. 10 lakhs prescribed by the CBDT for filing appeals.

What were the issues?

Whether appeals filed by the revenue with a tax effect below the prescribed monetary limit are maintainable before the ITAT.

Which sections of the Income-tax Act were involved?

Section 268A(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “D / K”, MUMBAI

Before: SHRI AMIT SHUKLA & SHRI RAJESH KUMAR

For Appellant: Shri A K Kardam

PER BENCH: In the aforesaid bunch of 24 appeals filed by the revenue against separate impugned orders of Ld. First Appellate Authority, it is prima facie noticed that the tax effect on the disputed issue raised by the revenue in the grounds of appeal are less than the prescribed monetary limit of Rs. 10 lakhs fixed by the CBDT.

2.

Now as per the latest CBDT Circular No. 21 of 2015 dated 10th December, 2015, issued by the CBDT in pursuance of provisions contained u/s 268A(1) had prescribed the monetary limit of filing of the appeal by the Department before the Income- tax Appellate Tribunal at Rs. 10 lakhs, that is, the tax affect for filing of appeal should exceed the said monetary limit. This has been laid down in para 3 of the circular which reads as under:-

1.

“3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:- S No Appeals in Income-tax matters Monetary Limit(in Rs) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- It has further been clarified by the CBDT that the said instruction will apply retrospectively to the pending appeals also and such appeals should be either withdrawn or not pressed by the revenue. The relevant para 10 reads as under:-

10. This instruction will apply retrospectively to pending 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 8 Virendra Vinamalidas Dhakan 23 others 3. The Ld. DR before us has admitted that, in all these appeals, the tax effect on the disputed issue is prima facie is less than Rs. 10 lakhs. However, he submitted that the appeal of the revenue can be dismissed as not pressed in view of the Circular, subject to liberty given to the Department that, in case if it is found by the AO that after the calculation, the tax effect exceeds Rs. 10 lakhs, then the Department is at liberty to file Miscellaneous Application for recalling or restoring of such order.

4.

After considering the aforementioned fact, we find that in all the aforesaid cases, the tax affect on the disputed issue is less than Rs. 10 lakhs and accordingly, in view of the CBDT Circular issued under the terms of section 268A(1), such an appeal is not maintainable and accordingly, all the appeals impugned herein are dismissed as not pressed in terms of the wording of the circulars.

5.

Resultantly, all the appeals filed by the revenue are dismissed as not maintainable. Order pronounced in the open court on 21st of December, 2015.

Sd/- Sd/- (राजेश कुमार) (अिमत शु�ला) लेखा सद�य �याईक सद�य (RAJESH KUMAR) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Date: 21st December, 2015 ��त/Copy to:- 1) अपीलाथ� /The Appellant. 2) ��यथ� /The Respondent. 3) The CIT(A) -10/Concerned _____, Mumbai. 4) The Director of Income Tax (IT)–I/CIT____Concerned, Mumbai. 5) िवभागीय �ितिनिध ““डी / के” ”, आयकर अपीलीय अिधकरण, मुंबई/ The D.R. “D / K” Bench, Mumbai. 6) गाड� फाईल \ Copy to Guard File.

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