ACIT 17(1) , MUMBAI V. GUPTA C K , MUMBAI

ITA 123/MUM/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 1202 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 05-10-2022
• Assessment Year: 2016-2017
• Appeal Filed On: 24-01-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 143(3); 13

Judgement Text

ITA No.123/Mum/2022 A.Y. 2016-17 ACIT-17(1) vs. Gupta C.K. 1 IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA No.123/Mum/2022 (A.Y 2016-17) ACIT-17(1) Kautilya Bhavan, Room No. 117, BKC, Bandra (East), Mumbai – 400051 Vs. Gupta C.K. 21, K.T. Building Devji Ratansey Marg, Masjit Bunder, Mumbai - 400009 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No.: AABHG8349D Respondent .. Appellant Appellant by : None Respondent by : Harmesh Lal Date of Hearing 06.10.2022 Date of Pronouncement 11.10.2022 आदेश / O R D E R PER AMARJIT SINGH, AM: The present filed by the revenue is directed against the order passed by the NAFC, Delhi, which in turn arises from the assessment order u/s 143(3) of the Act passed by the A.O for A.Y. 2016-17. 2. After taking into consideration the tax effect Rs.16,65,000/- involved in this case it is noticed that Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the Department before the ITAT, ITA No.123/Mum/2022 A.Y. 2016-17 ACIT-17(1) vs. Gupta C.K. 2 High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation. 3. CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.50,00,000/-. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. At para 13 of the above Circular, it has been mentioned that: “13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.” 4. As a step towards further management of litigation, CBDT vide Circular No. 17/2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-. ITA No.123/Mum/2022 A.Y. 2016-17 ACIT-17(1) vs. Gupta C.K. 3 5. In the instant appeal filed by the Department, the tax effect involved is below the monetary limit of Rs.50,00,000/-. 6. The revenue shall be at liberty to point out the exceptions and to seek recall the dismissal of appeal and restoration of the appeal in case it can be shown that the appeal is covered by the exceptions. 7. With the above observations, the appeal of the Revenue involving tax effect Rs.16,65,000/- which is less than Rs.50,00,000/- stand dismissed. Order pronounced in the open Court on 11.10.2022 Sd/- Sd/- (Kuldip Singh) (Amarjit Singh) Judicial Member Accountant Member Place: Mumbai Date 11.10.2022 Rohit: PS आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. आयकर आयुक्त(अपील) / The CIT(A)- 4. आयकर आयुक्त / CIT 5. विभागीय प्रविवनवध, आयकर अपीलीय अवधकरण DR, ITAT, Mumbai 6. गार्ड फाईल / Guard file. ITA No.123/Mum/2022 A.Y. 2016-17 ACIT-17(1) vs. Gupta C.K. 4 सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीिीय अतिकरण/ ITAT, Bench, Mumbai.