DEPUTY COMMISSIONER OF INCOME TAX 3(3) 2, MUMBAI SUPARNA CHEMICALS LIMITED , MUMBAI

The Income Tax Appellate Tribunal (ITAT) in Mumbai has dismissed two appeals filed by the Deputy Commissioner of Income Tax against Suparna Chemicals Ltd. The appeals, concerning assessment years 2014-15 and 2015-16, were dismissed because the tax effect of the disputed additions fell below the threshold limit of Rs. 50 Lakhs, as per the CBDT's Circular No. 17/2019. The tribunal granted the revenue liberty to seek recall if future findings indicate exceptions to the circular or a higher tax effect.

IN THE INCOME TAX APPELLATE TRIBUNAL
“G” BENCH, MUMBAI

BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
AND HON’BLE SHRI RAVISH SOOD, JM
(Hearing Through Video Conferencing Mode)

I.T.A. No.3854/Mum/2019
Assessment Year: 2014-15)
&
I.T.A. No.3855/Mum/2019

Assessment Year: 2015-16)
DCIT- 3(3)(2)
Room No.628, 6th Floor
Aaykar Bhawan, M.K.Road
Mumbai-400 020
PAN/GIR No. AABCS-4578-F
Appellant)

Vs.

M/s. Suparna Chemicals Ltd
54-A, Mittal Tower
Free Press Journal Road
Nariman Point, Mumbai-400 021
 Respondent)

Assessee by : Shri Navin Kumar Mishra-Ld.AR
Revenue by : Shri T.S. Khalsa- Ld. Sr.AR

Date of Hearing : 11/02/2021
Date of Pronouncement : 11/02/2021

 O R D E R

Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by revenue for Assessment Years [in shortreferred to as ‘AY’] 2014-15 & 2015-16 contest separate orders oflearned first Appellate Authority which has granted certain relief to the assessee on account of weighted deduction u/s 35(2AB). 

2. The Ld. Counsel for Assessee, Shri Navin Kumar Mishra, at the outset, drawing attention to Form Nos. 36, submitted that tax effect of quantum additions under dispute in both the years isbelow prescribed threshold limit of Rs.50 Lacs and therefore, the revenue’s appeals are not maintainable in terms of latest low tax effect CBDT Circular No. 17/2019 dated 08/08/2019[F.No.279/Misc. 142/2007-TTJ(Pt.). The Ld. DR could not point out any exception to controvert the plea raised by Ld. AR.

3. After going through material on record, we find that the taxeffect of quantum additions under dispute, in both the appeals, isbelow threshold monetary limit of Rs.50 Lacs and therefore, theappeals are not maintainable in terms of recently issued low taxeffect Circular No. 17/2019 dated 08/08/2019 [F.No.279/Misc.142/2007-TTJ(Pt.) issued by CBDT. This recent circular furtherenhances the monetary limit fixed in earlier Circular No.3 of 2018dated 11/07/2018 issued by CBDT as amended on 20/08/2018. In view of the same, the appeals are not maintainable.

4. At the same time, a liberty is given to revenue to seek recall of the appeals, if at a later stage, it is found that the matter is covered by any exceptions provided in any of the circular or in case the tax effect in the appeals exceeds the prescribed monetary limit.

5. Resultantly, both the appeals stands dismissed.

Order pronounced on 11th February, 2021.

 Sd/-                                                Sd/-
 (Ravish Sood)                              (Manoj Kumar Aggarwal)
Judicial Member                           Accountant Member

Mumbai Dated : 11/02/2021
Sr.PS, Kasarla Thirumalesh 

Copy of the Order forwarded to :
1.The Appellant
2.The Respondent
3.The CIT(A)
4.CIT– concerned
5. DR, ITAT, Mumbai
6. Guard File

 BY ORDER,
(Dy./Asstt.Registrar)
 ITAT, Mumbai.