What did the Tribunal hold?

The Tribunal noted that the tax effect was below the revised monetary limit of Rs. 50,00,000/- for filing appeals by the department as per CBDT Circular No. 17 of 2019. Therefore, the appeal was not maintainable.

The Department filed an appeal against the order of the CIT(A) for AY 2014-15. The tax effect in the appeal was calculated to be Rs. 36,06,550/-.

What were the issues?

Whether the departmental appeal is maintainable before the ITAT when the tax effect is below the prescribed monetary limit set by the CBDT.

ITO vs Shri Krishna Murari Mittal, Kota | ITAT Jaipur 2020

Income Tax Appellate Tribunal, JAIPUR BENCHES ‘B’ JAIPUR

Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 200/JP/2018

Hearing: 16.03.2020Pronounced: 16.03.2020

jktLo dh vksj ls@ Revenue by : Smt. Runi Pal (JCIT) fu/kZkfjrh dh vksj ls@Assessee by : Shri Devang Gargieya (ITP) lquokbZ dh rkjh[k@ Date of Hearing : 16.03.2020 ?kks"k.kk dh rkjh[k@ Date of Pronouncement : 16.03.2020 vkns'k@ ORDER PER: VIKRAM SINGH YADAV, A.M. This appeal by the department is directed against the order dated 29.11.2017 of ld. CIT (A), Kota for the assessment year 2014-15. As per the grounds of appeal, the tax effect calculated by the AO in respect of the relief granted by the ld. CIT (A) which has been challenged in the present appeal is Rs. 36,06,550/-.

We have heard the ld. D/R as well as the ld. A/R. At the outset, we note that the tax effect in this appeal is not exceeding the monetary limit as revised by the CBDT vide Circular dated 08.08.2019 for the purpose of filing of appeal by the department before the Income Tax Appellate Tribunal from Rs. 20,00,000/- to Rs. ITO, Kota vs. Shri Krishna Murari Mittal, Kota 50,00,000/-. For ready reference, we reproduce the CBDT Circular No. 17 of 2019 dated 08.08.2019 as under :-

Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation.

Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation. Appeals/SLPs in Income- Monetary Limit (Rs.) Monetary Limit (Rs.) tax matters (previous limit) (Revised Limit) Before Appellate 20,00,000 50,00,000 Tribunal Before High Court 50,00,000 1,00,00,000 Before Supreme Court 1,00,00,000 2,00,00,000 • The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. • Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. • In case where a composite order/ judgement involves more than one assessee, each assessee shall be dealt with separately.”

Accordingly, the appeal of the department is not maintainable being monetary limit is less than/not exceeding Rs. 50,00,000/-. -JP-2018 ITO, Kota vs. Shri Krishna Murari Mittal, Kota 3. The department is at liberty to file the Miscellaneous Application in case the tax effect in this appeal is found to be more then Rs. 50,00,000/- or the case falls in any of the exceptions of the circular. 4. In the result, appeal of the department is dismissed.

Order pronounced in the open court on 16/03/2020

INCOME TAX OFFICER, KOTA vs. SHRI KRISHNA MURARI MITTAL, KOTA

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