2016 (6) TMI 1397 - AT - Income Tax

Maintainability of appeal - low tax effect - tax effect below prescribed monetary limit - HELD THAT - Since, the tax effect is less than ₹ 10,00,000/- for filing the appeal before the Tribunal, as contained in CBDT instruction No.21 of 2015, dated 10/12/2015 (F No.279/Misc./142/2007IT(PT), applicable with retrospective effect, the appeal of the Revenue is not maintainable, therefore, dismissed.

Summary

Issues involved:
- Appeal against the order of the Ld. First Appellate Authority, Mumbai.
- Whether the total tax effect in the present appeal is below the prescribed monetary limit for filing an appeal before the Tribunal.

Analysis:
The judgment pertains to an appeal filed by the Revenue against the order of the Ld. First Appellate Authority, Mumbai. The key issue addressed in this case is whether the total tax effect in the appeal falls below the prescribed monetary limit for filing an appeal before the Tribunal. During the hearing, it was noted that the total income assessed was &8377; 22,48,457, resulting in a tax effect below the prescribed monetary limit of &8377; 10 lakh for filing an appeal before the Tribunal. The CBDT instruction No.21 of 2015, dated 10/12/2015, set the monetary limits for filing appeals in income-tax matters. The instruction specified that appeals before the ITAT should not be filed if the tax effect does not exceed &8377; 10,00,000.

The Judicial Member considered the submissions of the ld. DR and the material available on record. In line with the CBDT instruction, it was concluded that since the tax effect in the present case was less than the prescribed limit of &8377; 10,00,000, the appeal of the Revenue was deemed not maintainable. Consequently, the appeal of the Revenue was dismissed on the grounds of not meeting the monetary limit criteria for filing an appeal before the Tribunal. The judgment highlights the importance of adhering to the prescribed monetary limits set by the CBDT for filing appeals in income-tax matters before the Tribunal, ensuring that appeals meeting the specified tax effect criteria are entertained.

In conclusion, the judgment delivered by the Appellate Tribunal ITAT Mumbai dismissed the appeal of the Revenue as not maintainable due to the total tax effect falling below the prescribed monetary limit of &8377; 10,00,000 for filing an appeal before the Tribunal. The decision was based on the CBDT instruction setting the monetary limits for filing appeals in income-tax matters, emphasizing the significance of complying with the specified criteria to determine the maintainability of appeals before the Tribunal.