What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal without going into the merits of the case. This decision was based on the tax effect being below the monetary limit prescribed by CBDT circulars for filing appeals.

The Revenue filed an appeal before the ITAT against an order of the CIT(Appeals). The assessee argued that the appeal should be dismissed due to low tax effect as per prevailing CBDT circulars.

What were the issues?

Whether the Revenue's appeal should be dismissed on the grounds of low tax effect as per CBDT circulars. The monetary limits for filing appeals before the Tribunal were enhanced by CBDT.

DCIT vs Shri Satish K. Munde, Nagpur | ITAT Nagpur 2020

Income Tax Appellate Tribunal, BENCH, NAGPUR

Before: SHRI D. KARUNAKARA RAO, AM & SHRI PARTHA SARATHI CHAUDHURY, JM

For Appellant: Shri Prakash Nanwani

For Respondent: Dr. Milind Bhusari, CIT &, Smt. Agnes Thomas, JCIT

Hearing: 18.02.2020Pronounced: 18.02.2020

आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM :

This appeal preferred by the Revenue emanates from the order of the Ld. CIT(Appeals)-1, Nagpur dated 29.06.2015 for the assessment year 2008- 09 as per the grounds of appeal on record.

2. At the very outset, the Ld. AR of the assessee submitted that the appeal of Revenue is liable to be dismissed on account of low tax effect in terms of recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)], dated 08.08.2019 read with Circular No.3 of 2018 dated 11.07.2018 revising the upward monetary limits for filing of appeals in Income Tax Cases before various Appellate Forums. The earlier CBDT Circular No.03/2019 dated 11.07.2018 fixed monetary limit for filing of appeals before the Tribunal at Rs.20 Lakhs. Such limit has been enhanced in the recent CBDT Circular dated 08.08.2019 from Rs.20 lakhs to Rs. 50 Lakhs. Thus, the tax effect on the addition is less than Rs.50 Lakhs.

3. The Ld. DR fairly admitted that in the present appeal by the Department tax effect is less than Rs.50 Lakhs.

Both sides heard. Undisputedly, the tax effect involved in this appeal is less than the monetary limit prescribed by the recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)] dated 08-08-2019 read with Circular No.3 of 2018 dated 11.07.2018 for filing of appeals before the Tribunal by the Department. The CBDT vide circular dated 08.08.2019 (supra.) has amended Para 3 of Circular No.3 of 2018 dated 11.07.2018 thereby enhancing monetary limit of tax effect from Rs.20 Lakhs to Rs.50 Lakhs for filing appeals by the Department before the Tribunal. Thus, without going into merit of the issues raised in the appeal, in view of the CBDT Circular (supra), we dismiss the appeal filed by the Revenue.

Before parting, we clarify here 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.

In the result, appeal of the Revenue is dismissed.

Order pronounced on 18th day of February, 2020.

Sd/- Sd/- D. KARUNAKARA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 18th February, 2020. SB आदेश की प्रनिलऱपप अग्रेपषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2.

The CIT(Appeals)-1, Nagpur.

DY.C.I.T. CIR 1, NAGPUR vs. SHRI SATISH K. MUNDE, NAGPUR

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