What did the Tribunal hold?

The Tribunal held that the tax effect in the appeal was below the prescribed monetary limit as per CBDT instructions. Therefore, the appeal of the Revenue was not maintainable.

The Revenue filed an appeal before the ITAT. The assessee contended that the appeal was not maintainable due to the tax effect being below the prescribed monetary limit.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT when the tax effect is below the prescribed monetary limit set by the CBDT.

ITO vs Ark Industries P.Ltd | ITAT Mumbai 2015

Income Tax Appellate Tribunal, MUMBAI BENCHES “A”, MUMBAI

Before: Shri Joginder Singh, & Shri Ramit Kochar

For Respondent: Ms. Vinita Menon, Shri Ashok Patil

Hearing: 17/12/2015

आदेश / O R D E R

Per Joginder Singh (Judicial Member) The Revenue is aggrieved by the impugned order dated 21/10/2013 of the ld. First Appellate Authority, Mumbai.

2 M/s ARK Industries Pvt. Ltd.

At the outset, the ld. counsel for the assessee Shri Ashok Patil, contended that the appeal of the Revenue is not maintainable as the tax effect is below prescribed monetary limit. This factual matrix was not controverted by Ms. Vinita Menon, ld. DR. 2.1. We have considered the rival submissions and perused the material available on record. Before us, the stand of the assessee is that the total income computed by the Assessing Officer is Rs22,82,291/- on which the tax effect comes to Rs.7,05,228/- which is below the prescribed limit of Rs.10 lakh. This factual matrix was consented to be correct by ld. DR. 2.2. In view of the fact that the tax effect in the appeal is below prescribed monetary limit, the appeal of the Revenue is not maintainable, 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.:-

3 M/s ARK Industries Pvt. Ltd.

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, the appeal of the Revenue is not maintainable. Therefore, in view of the above, the appeal of the Revenue is dismissed as not maintainable. Finally, the appeal of the Revenue is dismissed. 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 17/12/2015 Sd/- Sd/- (Ramit Kochar) (Joginder Singh) लेखा सद�य / ACCOUNTANT MEMBER �या�यक सद�य /JUDICIAL MEMBER मुंबई Mumbai; �दनांक Dated : 17/12/2015 f{x~{tÜ? P.S/.�न.स.

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. आयकर आयु�त(अपील) / The CIT, Mumbai. 4. आयकर आयु�त / CIT(A)- , Mumbai

4 M/s ARK Industries Pvt. Ltd.

ITO 6(1)(3), MUMBAI vs. ARK INDUSTRIES P.LTD, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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