Liberty given to revenue to seek recall of the appeal under VSVS 2020.

The Income Tax Appellate Tribunal has dismissed an appeal filed by the revenue concerning assessment year 2015-16. The dismissal is based on a CBDT circular regarding low tax effect, as the disputed amount was below the prescribed threshold of Rs. 50 Lacs. However, the revenue has been granted liberty to request a recall of the appeal if it's later found to fall under exceptions or if the tax effect exceeds the monetary limit.

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.3856/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. AAACW-0011-E
Appellant)

Vs.

M/s. White Pearl Hotels &
Investments Pvt.Ltd.
4/27, First Floor, Kamal Mansion
Arthur Bunder Road, Colaba
Mumbai-400 005
Respondent)

Assessee by : Ms. Pramila Rathi-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 appeal by revenue for Assessment Year [in short referred to as ‘AY’] 2015-16 contest the order of Ld. Commissionerof Income-Tax (Appeals)-8, Mumbai [in short referred to as ‘CIT(A)’], Appeal No.CIT(A)-8/IT-20/17-18, dated 25/03/2019 which has deleted certain disallowance of Rs.83.94 Lacs u/s 14A.

2. The Ld. Counsel for Assessee, Ms. Pramila Rathi, at theoutset, submitted that tax effect of quantum additions being contested by the revenue is below prescribed threshold limit ofRs.50 Lacs and therefore, the revenue’s appeal is not maintainablein 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 tax effect of quantum additions under dispute is below threshold monetary limit of Rs.50 Lacs and therefore, the appeal is not maintainable in terms of recently issued 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. In view of the same, the appeal is not maintainable.

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

5. Resultantly, the appeal 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.