2023 (7) TMI 1608 - AT - Income Tax

Revenue appeal dismissed for lack of maintainability as Form-36 showed ?30,000 tax effect below CBDT threshold; Para 10 exceptions allowed

ITAT MUMBAI dismissed the Revenue's appeal for lack of maintainability because the tax effect shown in Form-36 was only Rs.30,000, below the Rs.50,00,000 ... Maintainability of appeal on low tax effect - HELD THAT:-Undisputedly, the tax effect involved in the appeal is less than Rs. 50,00,000/- i.e. the monetary limit specified by the CBDT vide Circular No. 17/2019 dated 08/08/2019 for filing of appeals by the Revenue before the Tribunal. As per Form -36 the tax effect is only Rs. 30,000/-. Thus, without going into merits of the issue raised in appeal, the present appeal by the Revenue is dismissed on account of low tax effect. As clarified that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20/08/2018. Appeal by Revenue is dismissed. The appeal by the Revenue challenges the CIT(A)'s order for AY 2011-12. The parties conceded the tax effect is below the monetary threshold specified by CBDT Circular No. 17/2019 dated 08/08/2019. As per Form-36 the tax effect is Rs. 30,000 and the Department admitted it is under Rs. 50,00,000. Undisputedly, since the tax effect is less than Rs. 50,00,000, the Tribunal declined to consider merits and 'dismissed on account of low tax effect.' The order allows the Revenue 'to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20/08/2018.' Appeal dismissed.