2016 (2) TMI 917 - AT - Income Tax

Maintainability of appeal - monetary limit - Held that - As the CBDT has revised the monetary limits to file appeal vide its Instruction No.21/2015 dated 10.12.2015, the new monetary limit to file an appeal to ITAT is ₹ 10 Lakhs. In the aforementioned case, the tax effect is below the prescribed limit. Hence, it is requested to withdraw the appeal on the basis of tax limit, however, the order of CIT(A) is not accepted on merit. In view of the circular of the board mentioned in the above application, we dismiss the appeal filed by the Revenue, being not maintainable.

Summary

Issues:
Appeal against CIT(A) order for assessment year 1995-96 - Withdrawal of appeal by Revenue based on revised monetary limits for filing appeal before ITAT - Tax effect below prescribed limit of Rs. 10 Lakhs - Dismissal of appeal by ITAT.

Analysis:
The appeal before the ITAT Mumbai was filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-10, Mumbai for the assessment year 1995-96. During the hearing, arguments were presented by the Authorised Representative on behalf of the Assessee and the Departmental Representative on behalf of the Revenue. Subsequently, an application was filed by the Ld. Commissioner of Income Tax (International Taxation)-2, Mumbai, seeking withdrawal of the appeal based on the revised monetary limits for filing appeals before the ITAT. The application highlighted that the tax effect in the case was below the newly prescribed limit of Rs. 10 Lakhs. The appeal was requested to be withdrawn on the basis of the tax limit, although the order of the CIT(A) was not contested on merit. The ITAT, considering the application and the circular from the board, dismissed the appeal filed by the Revenue as it was deemed not maintainable due to the tax effect being below the prescribed limit.

Therefore, the ITAT Mumbai, comprising Shri Sanjay Garg, Judicial Member, and Shri Ashwani Taneja, Accountant Member, pronounced the order on 15th February 2016, dismissing the appeal filed by the Revenue against the order of the CIT(A) for the assessment year 1995-96. The dismissal was based on the withdrawal application submitted by the Revenue, citing the tax effect being below the revised monetary limit of Rs. 10 Lakhs for filing appeals before the ITAT. The appeal was not contested on its merits, leading to its dismissal by the ITAT.