What did the Tribunal hold?

The Tribunal noted that the tax effect in each appeal was below the monetary limit of Rs. 10,00,000/- as per CBDT instructions. Therefore, the appeals filed by the Revenue were not maintainable.

The Revenue filed three appeals before the ITAT against the assessee for assessment years 2006-07 to 2008-09. The assessee contended that the appeals were not maintainable due to the tax effect being below the prescribed monetary limit.

What were the issues?

The primary issue was whether the Revenue's appeals were maintainable before the ITAT given that the tax effect was below the monetary limit stipulated by CBDT instructions.

ITO vs Ambalal K Shah | ITAT Mumbai 2015

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

Before: Shri Joginder Singh, & Shri Ramit Kochar

For Respondent: Shri Maurya Pratap, Shri R.M. Jain

Hearing: 17/12/2015

आदेश / O R D E R

Per Joginder Singh (Judicial Member) All these three appeals are by the Revenue directed against the impugned order all dated 03/10/2013 for A.Y.

2 Shri Ambalal K Shah to 7536/Mum/2013

2006-08 to 2008-09 of the ld. First Appellate Authority, Mumbai.

At the outset, the ld. counsel for the assessee Shri R.M. Jain, contended that the appeals of the Revenue are not maintainable as the tax effect is below prescribed monetary limit. This factual matrix was not controverted by Shri Maurya Pratap, ld. DR.

2.1. We have considered the rival submissions and perused the material available on record. We note that the total income for A.Y. 2007-08 is Rs.13,81,550/- and the consequent tax effect is Rs.5,21,740/-. Likewise, for A.Y. 2006-07, the tax effect is Rs.7,03,381/- and for A.Y. 2008-09, the tax effect is Rs.,4,34,483/- computed by the Assessing Officer, as is evident from the respective impugned orders. The ld. DR fairly agreed that in the respective appeal, the tax effect is below the prescribed 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

3 Shri Ambalal K Shah to 7536/Mum/2013 where the tax effect does not exceed the following monetary limit.:-

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, these appeals of the Revenue are not maintainable. Therefore, in view of the above, the appeals of the Revenue are dismissed as not maintainable. Finally, the appeals of the Revenue are 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

ITO 14(3)(2), MUMBAI vs. AMBALAL K SHAH, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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