2018 (11) TMI 1816 - AT - Income Tax

Maintainability of appeal - low tax effect - HELD THAT - Tax effect of the Revenue s appeal is below ₹ 20 lacs, i.e., the threshold monetary limit applicable for the Revenue s appeals before the Tribunal u/s. 268A as per the latest instruction, i.e., No. 3 dated 11.07.2018, by the CBDT. With reference to the grounds of appeal as well as the assessment order, it was confirmed by the Bench that the addition being agitated is for ₹ 34.22 lacs, entailing a tax effect at ₹ 11.05 lacs. As per Section 268A of the Act monetary limit fixed per the latest instruction for the appeals before the tribunal is ₹ 20 lacs. Therefore, the instant appeal, being covered by section 268A read with the applicable Instruction cited supra, which is to apply for pending appeals as well, is not maintainable. The Revenue s appeal is accordingly dismissed in limine as not maintainable.

Summary

Issues:
1. Appeal by the Revenue against the Order of the Commissioner of Income Tax (Appeals) dated 29.02.2012.
2. Determination of the tax effect of the Revenue's appeal.
3. Applicability of Section 268A of the Income Tax Act, 1961 regarding monetary limits for appeals.
4. Dismissal of the Revenue's appeal based on the monetary limit set by the latest instruction.

Analysis:
The judgment pertains to an appeal by the Revenue against the Order of the Commissioner of Income Tax (Appeals) dated 29.02.2012, which partly allowed the assessee's appeal contesting the assessment under section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2008-09. The assessee's counsel pointed out that the tax effect of the Revenue's appeal was below the threshold monetary limit of ?20 lakhs set for Revenue's appeals before the Tribunal under section 268A of the Act. The Bench confirmed that the disputed addition amounted to ?34.22 lakhs, resulting in a tax effect of ?11.05 lakhs, falling below the prescribed limit.

Section 268A of the Act mandates that appellate authorities, including the Appellate Tribunal, must consider the monetary limits set by the Board for regulating the filing of appeals by the Revenue. The latest instruction specified a monetary limit of ?20 lakhs for appeals before the Tribunal. As the tax effect in the present case was below this limit, the appeal by the Revenue was deemed not maintainable. The judgment highlighted that this monetary limit applies to pending appeals as well, leading to the dismissal of the Revenue's appeal in limine on the grounds of non-maintainability.

In conclusion, the Revenue's appeal was dismissed in limine based on the monetary limit prescribed by section 268A of the Act and the latest instruction issued by the CBDT. The decision was pronounced in the open court on November 15, 2018, emphasizing the importance of adhering to the specified monetary limits for appeals before the Appellate Tribunal to streamline the appellate process and ensure efficient adjudication of cases.