ITO, WARD-4(1), KOLKATA vs. MADHUSUDAN BARTER PVT. LTD., KOLKATA

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ITA 61/KOL/2021Status: DisposedITAT Kolkata03 August 2023AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CBDT circular regarding monetary limits for appeals is binding on revenue authorities and applies retrospectively. Since the tax effect was below the prescribed limit, the appeal was not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT against the order of the CIT(A). The tax effect on the disputed additions was less than Rs. 50 lacs, which is the prescribed monetary limit for filing appeals before the Appellate Tribunal as per CBDT Circular No. 17/2019.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the ITAT given the low tax effect, in light of the CBDT's monetary limits for filing appeals.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, KOLKATA BENCH ‘C’, KOLKATA

Before: SHRI RAJESH KUMAR, HON’BLE & SHRI SONJOY SARMA, HON’BLE

For Appellant: Shri Soumitra Choudhury, Advocate
For Respondent: Shri Sunil Kumar Agarwala, CIT, DR
Hearing: 02.08.2023Pronounced: 03.08.2023

O R D E R

PER SONJOY SARMA, JM:

1.

The present appeal filed by the Revenue is directed against the order dated 22.09.2020 of the Commissioner of Income Tax (Appeals)-7, Kolkata [hereinafter referred to as the ‘CIT(A)].

2 It is seen, at the outset, that the tax effect on the disputed additions before us is less than Rs.50 lacs as the prescribed in the CBDT’s latest Circular No.17/2019 dated 08.08.2019. It will be pertinent to reproduce the relevant portion of the said Circular as follows:-

“2 . As a step toward further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals/SLPs in Income-tax Monetary Limit matters (Rs.) 1. Before Appellate Tribunal 50,00,000 2. Before High Court 1,00,00,000

Madhusudan Barter Private Limited A.Y. 2012-13 3. Before Supreme Court 2,00,00,000 2.1 We find that intention behind the Circular No.17/2019 dated 08.08.2019 needs to be understood in the following perspective:- 3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-à-vis where composite order for more than one assessment year is passed, para 5 of the circular is substituted by the following para: “5. 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, 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 specified in para 3. No. appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. 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 assessments 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 specified in para 3. In case where a composite order/judgment involves more than one assessee, each assessee shall be dealt with separately.”

2.2. On perusal of the Circular No.17/2019 dated 08.08.2019 and the materials available on record, it reveals that this circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals as well. Hon’ble apex court in Commissioner of Customs vs. Indian Oil Corporation Ltd reported in 267 ITR 272 (SC) has settled the law that CBDT’s circulars are very much binding on revenue authorities.

3.

The ld. DR has also fairly stated that tax effect involved in appeal is less than the prescribed limit.

Madhusudan Barter Private Limited A.Y. 2012-13 4. In view of above stated position, the appeal of the Revenue is dismissed because of low tax effect than the prescribed limits as per CBDT Circular No.17/2019 (supra).

Order pronounced in the open court on 03.08.2023

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