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2020 (11) TMI 1059 - AT - Income TaxMaintainability of appeal against CIT-A orders - low tax effect - tax effect of quantum additions - HELD THAT - Upon perusal of case records, it transpires that as per Column-10 of Form-36, the tax effect of quantum additions as disputed by the revenue is stated to be Rs.27,93,867/- which is below threshold limit of Rs.50 Lacs and therefore, the appeal is not maintainable in terms of latest low tax effect Circular No. 17/2019 dated 08/08/2019 F.No.279/Misc. 142/2007- TTJ(Pt.) issued by CBDT. This recent circular further enhances the monetary limit fixed in earlier Circular No.3 of 2018 dated 11/07/2018 issued by CBDT as amended on 20/08/2018. DR could not controvert the aforesaid fact. No exceptions have been pointed out. Therefore, the appeal is, prima-facie, not maintainable in terms of aforesaid circular issued by CBDT and hence, liable to be dismissed.
Issues:
Appeal against CIT(A) order on grounds of low tax effect Analysis: The Appellate Tribunal, ITAT Mumbai, consisting of Hon'ble Shri Saktijit Dey, JM, and Hon'ble Shri Manoj Kumar Aggarwal, AM, heard an appeal where the revenue challenged the order of the Ld. Commissioner of Income Tax (Appeals)-58, Mumbai. The appeal was related to certain grounds of appeal as annexed with Form No. 36. Despite the absence of anyone representing the assessee, it was noted that the tax effect of quantum additions disputed by the revenue was Rs.27,93,867, falling below the threshold limit of Rs.50 lakhs as per the recent circular No. 17/2019 dated 08/08/2019 issued by CBDT. This circular amended the earlier Circular No.3 of 2018, enhancing the monetary limit. The tribunal observed that the learned DR did not contest this fact, and no exceptions were highlighted. Consequently, the appeal was deemed prima facie not maintainable as per the CBDT circular and was dismissed accordingly. The tribunal, while dismissing the appeal, granted the revenue the liberty to request a recall of the appeal if, at a later stage, it was discovered that the matter fell under any exceptions provided in the circular or if the tax effect exceeded the prescribed monetary limit. This decision was pronounced in the open court on 9th November 2020.
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