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IN THE INCOME TAX APPELLATE TRIBUNAL "A" BENCH, MUMBAI
BEFORE S/SHRI B.R.BASKARAN, AM AND AMARJIT SINGH, JM
./I.T.A. No.2476/Mum/2012
( / Assessment Year:2008-09)
Income Tax Officer 25(1)(2), / Sri Arvind Umanath Prabhu,
Room No.204, 2nd floor, 204, Krishna Vatika Bld.g No.1,
Vs.
Building No.C-11, C S Road, No.4,
Pratyakshakar Bhavan, Dahisar (E),
Bandra Kurla Complex, Mumbai-400068
Bandra (E),
Mumbai-400051
( /Appellant) .. ( / Respondent)
Cross-Objection No.222/M/2013
Arising out of I.T.A. No.2476/Mum/2012
( / Assessment Year:2008-09)
Sri Arvind Umanath Prabhu, / Income Tax Officer 25(1)(2),
204, Krishna Vatika Bld.g No.1, Room No.204, 2nd floor,
Vs.
C S Road, No.4, Building No.C-11,
Dahisar (E), Pratyakshakar Bhavan,
Mumbai-400068 Bandra Kurla Complex,
Bandra (E),
Mumbai-400051
( /Appellant) .. ( / Respondent)
./I.T.A. No.3323/Mum/2014
( / Assessment Year:2009-10)
Income Tax Officer 25(1)(2), / Sri Arvind Umanath Prabhu,
Room No.204, 2nd floor, 204, Krishna Vatika Bld.g No.1,
Vs.
Building No.C-11, C S Road, No.4,
Pratyakshakar Bhavan, Dahisar (E),
Bandra Kurla Complex, Mumbai-400068
Bandra (E),
Mumbai-400051
( /Appellant) .. ( / Respondent)
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and other 3 cases
Cross-Objection No.167/M/2015
Arising out of I.T.A. No.3323/Mum/2014
( / Assessment Year:2009-10)
Sri Arvind Umanath Prabhu, / Income Tax Officernd
25(1)(2),
204, Krishna Vatika Bld.g No.1, Room No.204, 2 floor,
Vs.
C S Road, No.4, Building No.C-11,
Dahisar (E), Pratyakshakar Bhavan,
Mumbai-400068 Bandra Kurla Complex,
Bandra (E),
Mumbai-400051
( /Appellant) .. ( / Respondent)
./ ./PAN. :AADPP2173J
/ Revenue by Shri Manoj Kumar
/Assessee by Shri Arjun Saini
/ Date of Hearing
: 5.1.2016
/Date of Pronouncement: 5.1.2016
/ O R D E R
Per Bench:
Both the appeals filed at the instance of the Revenue are directed
against the separate orders passed by learned CIT(A)-35, Mumbai and
they relate to the assessment years 2008-09 and 2009-10.
2. At the time of hearing, the Ld A.R submitted that the tax effect
involved in all these appeals on the disputed issues is less than Rs.10.00
lacs. We notice that the amount in dispute is Rs.17,86,000/- in AY 2008-
09 and Rs.19,62,594/- in AY 2009-10.
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and other 3 cases
3. We notice that the revenue is contesting the decision of Ld CIT(A) in
granting relief to the extent stated above and hence the tax effect involved
on the above said disputed amounts works out to less than Rs.10 lakhs in
each of the cases referred above. Recently the CBDT has issued a circular
No.21/2015 dated 10.12.2015 prescribing new monetary limits for
preferring appeals against the orders passed by Ld CIT(A) before the
Tribunal. The relevant portion of the circular cited above reads as under:
"F No 279/Misc. 142/2007-ITJ (Pt)
Government of India
Ministry of Finance
Department of Revenue
Central Board Direct Taxes
Circular No. 21/2015
New Delhi the 10th December, 2015
Sub :Revision of monetary limits for filing of appeals by the
Department before Income Tax Appellate Tribunal and High
Courts and SLP before Supreme Court - measures for reducing
litigation Reg
Reference is invited to Board's instruction No 5/2014 dated 10.07.2014
wherein monetary limits and other conditions for filing departmental
appeals (in Income-tax matters) before Appellate Tribunal and High
Courts and SLP before the Supreme Court were specified.
2. In supersession of the above instruction, it has been decided by the
Board that departmental appeals may be filed on merits before Appellate
Tribunal and High Courts and SLP before the Supreme Court keeping in
view the monetary limits and conditions specified below.
3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax
effect does not exceed the monetary limits given hereunder:
S No Appeals in Income-tax matters Monetary Limit (in Rs)
1 Before Appellate Tribunal 10,00,000/-
2 Before High Court 20,00,000/-
3 Before Supreme Court 25,00,000/-
It is clarified that an appeal should not be filed merely because the tax
effect in a case exceeds the monetary limits prescribed above. Filing of
appeal in such cases is to be decided on merits of the case.
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and other 3 cases
4. 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 the issues against which appeal is intended to be filed
(hereinafter referred to as "disputed issues"). 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 orders, the tax
effect will mean quantum of penalty deleted or reduced in the
order to be appealed against.
5. ..........
6.........
7. ......
8. .......
9. .....
10. This instruction will apply retrospectively to pending
appeals and appeals to be filed henceforth in High Courts/
Tribunals. Pending appeals below the specified tax limits in para
3 above may be withdrawn/ not pressed. Appeals before the
Supreme Court will be governed by the instructions on this subject,
operative at the time when such appeal was filed."
11. ....."
It can be noticed that the CBDT has further clarified that this new
circular/instruction shall apply retrospectively, i.e., even to the pending
appeals. It is also stated that the quantum of penalty deleted or reduced
shall be considered for determining the monetary limits.
4. It is well settled proposition that the circulars issued by the CBDT
are binding on the Income Tax Authorities. For this proposition, one may
gainfully refer to the decisions rendered by the Hon'ble Supreme Court in
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and other 3 cases
the case of Azadi Bachao Andolan (2003)(177 Taxation 775) and Pradip J
Mehta Vs. CIT (2008)(300 ITR 231). Hence, the latest circular issued by
the CBDT (referred supra) is binding on the income tax authorities.
Accordingly, we find merit in the submissions of Ld A.R that this appeal of
the revenue is not maintainable, since tax effect involved in this appeal is
less than Rs.10 lakhs. Accordingly, we dismiss the appeal filed by the
revenue.
5. The assessee has also filed cross objections in both the years. Since
the appeal of the revenue is dismissed, the Ld A.R submitted that the
assessee is not pressing the Cross Objections. Accordingly they are also
dismissed.
6. In the result, all the appeals of the revenue and the Cross objections
filed by the assessee are dismissed.
Pronounced accordingly on 5th January, 2016.
5th January, 2016
Sd sd
(AMARJIT SINGH) ( B.R. BASKARAN)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Mumbai: 5th January, 2016.
.../ SRL , Sr. PS
/Copy of the Order forwarded to :
1. / The Appellant
2. / The Respondent.
3. () / The CIT(A)- concerned
4. / CIT concerned
5. , , /
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and other 3 cases
DR, ITAT, Mumbai concerned
6. / Guard file.
/ BY ORDER,
True copy
(Asstt. Registrar)
, /ITAT, Mumbai
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