JCIT (TDS)(OSD)-2(3), MUMBAI V. .NIMBUS COMMUNICATIONS LTD, MUMBAI

MA 257/MUM/2020

AI Insights

The case involves a Miscellaneous Application by the Revenue seeking rectification of a Tribunal order dated 19/09/2019, which had dismissed an appeal due to the tax effect being below INR 50 lakhs, as per CBDT Circular No.17/2019. The Revenue argued that the tax effect was actually INR 57,56,131/-, thus exceeding the threshold. However, the Tribunal noted that a subsequent CBDT Circular No. 9 of 2024 had raised the monetary limit for filing appeals to INR 60 Lakhs, applicable even to pending cases. Consequently, the Tribunal dismissed the Miscellaneous Application, stating that the appeal would still be dismissed as per the new monetary limit, regardless of the rectification.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32697 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 1 month(s) 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 14-10-2020
• Laws Referred To: Circular No.17/2019, Circular No. 9 of 2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASSESSEE
• Keywords: Tax effect; TDS

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL \"B\" BENCH, MUMBAI SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER MA No. 257/MUM/2020 (Arising out of ITA No. 3948/Mum/2018) (Assessment Year: 2012-13) Joint Commissioner of Income Tax (OSD)(TDS) Circle 2(3) Room No.718, 7th Floor, Smt. K. G. Mittal Ayurvedic Hospital Bldg., Charni Road, Mumbai- 400002. …………. Appellant M/s. Nimbus Communications Limited, Nimbus Centre, Oberio Complex, Andheri (West), Mumbai -400053. [PAN:AAACN3947L] Vs ……………. Respondent Appearance For the Appellant/Department For the Respondent/Assessee : : Shri Krishna Kumar None Date Conclusion of hearing Pronouncement of order : : 20.09.2024 09.12.2024 O R D E R Per Rahul Chaudhary, Judicial Member: 1. The present Miscellaneous Application has been preferred by the Revenue seeking rectification of the order, dated 19/09/2019, passed by the Tribunal dismissing the appeal preferred by the Revenue for the Assessment Year 2012-13 [ITA No. 3948/Mum/2018]. 2. It was submitted by the Learned Departmental Representative that the Tribunal had, vide order dated 19/09/2019, dismissed the appeal filed by the Revenue stating that the tax effect on MA No. 257/Mum/2020 (Arising out of ITA No.3948/Mum/2018) Assessment Year 2012-13 2 the issue in the present appeal is below INR.50 lakhs in view of Circular No.17/2019, dated 08/08/2019, issued by the Central Board of Direct Taxes (CBDT). It was submitted by the Learned Departmental Representative that the Tribunal had failed to appreciate that the tax effect in the present case was INR.57,56,131/- and therefore, the appeal could not have been dismissed on account of low tax effect. This constituted a mistake apparent on record and therefore, present rectification application was preferred by the Revenue. 3. We have given thoughtful consideration to the submissions advance by the Learned Departmental Representative. We note that according to the Circular No. 9 of 2024, dated 17/09/2024, issued by the CBDT, the monetary limit for filing departmental appeals before the Tribunal stands enhanced and therefore, departmental appeals are not be filed before the Tribunal in cases where the tax effect does not exceed the specified monetary limits of INR 60 Lakhs. The aforesaid limit is also applicable to the pending appeals which are required to be withdrawn by the Revenue. Thus, even if the contention of the Revenue is accepted, the tax effect in the present appeal is below the aforesaid specified monetary limit. Therefore, the present appeal would have to be dismissed as ‘withdrawn/not pressed’ in terms of the aforesaid circular. That being the case, no fruitful purpose would be served in recalling the order, dated 19/09/2019, passed by the Tribunal since the restored appeal would then have to be again dismissed as withdrawn on account of tax effect being lowered than the prescribed monetary limit of INR.60 lakhs account. In view of the aforesaid, we declined to interfere with the order, dated 19/09/2019, passed by the Tribunal. MA No. 257/Mum/2020 (Arising out of ITA No.3948/Mum/2018) Assessment Year 2012-13 3 4. In result, the Miscellaneous Application preferred by the Revenue is dismissed. Order pronounced on 09.12.2024. Sd/- Sd/- (Om Prakash Kant) Accountant Member (Rahul Chaudhary) Judicial Member मुंबई Mumbai; िदनांक Dated : 09.12.2024 Milan, LDC MA No. 257/Mum/2020 (Arising out of ITA No.3948/Mum/2018) Assessment Year 2012-13 4 आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. आयकर आयुƅ/ The CIT 4. Ůधान आयकर आयुƅ / Pr.CIT 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, मुंबई / DR, ITAT, Mumbai 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, सȑािपत Ůित //True Copy// उप/सहायक पंजीकार /(Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, मुंबई / ITAT, Mumbai "