INCOME TAX OFFICER, WARD-3(3)(5), SURAT vs. PRAVINBHAI MANJIBHAI GHOGHARI, SURAT

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ITA 381/SRT/2019Status: DisposedITAT Surat29 December 2021AY 2014-153 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that CBDT Circular No. 17/2019, which increased the monetary limit for filing appeals to the Tribunal to Rs. 50,00,000/-, is binding on the Revenue. Therefore, the appeal filed by the Revenue was not maintainable.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) concerning AY 2014-15. The tax effect of the appeal was less than Rs. 50,00,000/-.

What were the issues?

Whether an appeal filed by the Revenue is maintainable when the tax effect is below the revised monetary limit prescribed by CBDT Circular No. 17/2019.

Which sections of the Income-tax Act were involved?

Section 143(3)

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Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Ms. Anupama Singla, Sr. DR
Hearing: 28/12/2021Pronounced: 29/12/2021

O R D E R

PER Dr. A. L. SAINI, ACCOUNTANT MEMBER:

1.

The captioned appeal filed by the Revenue, pertaining to Assessment Year (AY) 2014-15, is directed against the order passed by the Commissioner of Income Tax (Appeals)-3, Surat in Appeal No. CIT(A)- 3/10848/2016-17, which in turn arise out of an assessment order passed by the Assessing Officer u/s143(3) of the Income Tax Act, 1961 (in short the ‘Act’) dated 26.12.2016.

2.

None appeared on behalf of the assessee, despite service of notice of hearing. We have heard Ld. DR for the Revenue and note that in this revenue’s appeal in Revenue has raised ground in respect of addition deleted by the ld. CIT(A), which relates to income from other sources at Rs.1,32,92,565/- on which total tax comes to Rs.30,12,702/-, which comes in the ambit of tax effect of CBDT Circular vide Circular No. 17/2019 dated 08.08.2019.

3.

The CBDT has issued Circular No. 17/2019 dated 08.08.2019, whereby the monetary limits for filing of appeals by the Department before

Assessment Year: 2014-15 Pravinbhai Manjibhai Ghoghari Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:

1.

Before Appellate Tribunal Rs.50,00,000/- 2. Before High Court Rs.1,00,00,000/- 3. Before Supreme Court Rs.2,00,00,000/-

4.

In the present case, the tax effect by the revenue is less than Rs.50,00,000/-. Though this appeal had been filed by the revenue on 05/08/2019 and was within the monetary limit in the form of tax effect for filing appeals before Tribunal, in view of the recent Circular of CBDT, even such appeals will be governed by the new monetary limits laid down in the CBDT Circular No.17/2019 referred to above.

5.

It is a settled law that the Circulars issued by CBDT are binding on the Revenue. This position was confirmed by the Apex Court in the case of Commissioner of Customs vs. Indian Oil Corporation Ltd. reported in 267 ITR 272 wherein their Lordships examined the earlier decisions of the Apex Court with regard to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the statute. The appeal under consideration has certainly been filed contrary to the Circular issued by the CBDT Circular No.17 dated 08.08.2019.

6.

In the event, the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.50 lakhs or despite low tax effect the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order.

Assessment Year: 2014-15 Pravinbhai Manjibhai Ghoghari 7. In the result, the appeal of the Revenue (in for AY.2014-15) is dismissed.

Order pronounced on 29/12/2021 by placing result on notice board.

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