ACIT,CIRCLE-3, RANCHI vs. SHRI RAJKUMAR MEWARA, RANCHI

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ITA 182/RAN/2019Status: DisposedITAT Ranchi13 February 2023AY 2014-153 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was contrary to the Department's policy decision regarding monetary limits for appeals. Therefore, the appeal was dismissed in limine.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2014-15. The assessee pointed out that the tax effect in the appeal was below the revised monetary limit set by a CBDT circular for filing appeals.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the tax effect is below the revised monetary limit prescribed by CBDT Circular No. 17/2019.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “RANCHI” BENCH: RANCHI

Before: Shri Rajesh Kumar & Shri Sonjoy Sarma]

This is an appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-Ranchi [hereinafter referred to as ‘ Ld. CIT(A)’] dated 31.01.2019 for the assessment year 2014-15.

2.

At the outset ,the Ld. Counsel for the assessee submitted that the CBDT has issued a Circular No. 17/2019 dated 08.08.2019, whereby the monetary limits for filing of appeal by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as a measure for reducing

Shri Raj Kumar Mewara 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/-

3.

In the present case, the tax effect by the revenue is less than Rs.50,00,000/-. We note that this appeal had been filed by the revenue on 16.04.2019 and since the tax effect is within the monetary limit for filing appeals before Tribunal, in view of the Circular of CBDT (supra) at the first place, Revenue should not have preferred this appeal. In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department is dismissed in limine.

4.

As a matter of caution, we observe that if 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.

5.

In the result, appeal of the revenue is dismissed.

Order is pronounced in the open court on 13th February, 2023

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