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Income Tax Appellate Tribunal, HYDERABAD BENCHES “B”, HYDERABAD
Before: SHRI RAMA KANTA PANDA & SHRI K.NARASIMHA CHARY
आदेश / ORDER PER K. NARASIMHA CHARY, J.M: Aggrieved by the order dated 23/08/2023 passed by the learned Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of Vinayak Steels Limited (“the assessee”) for the assessment year 2013-14, Revenue preferred this appeal.
At the outset, the learned AR submitted that to total addition itself is Rs. 64,50,000/- and tax effect is less than Rs. 50 lakhs. Learned AR also brought to our attention that CBDT vide Circular No. 17/2019 dated 8th August 2019 has decided that the Revenue would not prefer any appeal before the Tribunal if the tax effect is less than Rs. 50 lakhs. Therefore, learned AR pleaded that the appeal of the Revenue be decided as per the Instruction of the CBDT. Learned DR does not dispute this factual position. Nor is it the case of the Revenue that this case falls under any of the exceptions.
We have gone through the records and we find that the CBDT vide Circular No. 17/2019 dated 8th August 2019 has enhanced the monetary limit for filing the appeal by the Revenue before Income Tax Appellate Tribunal, Hon’ble High Courts and Hon’ble Supreme Court. The relevant para of the aforesaid circular is reproduced as under :-
“2. As a step towards 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 matters Monetary Limit (Rs) 1. Before Appellate Tribunal 50,00,000 2. Before High Court 1,00,00,000 3. Before Supreme Court 2,00,00.000 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-a-vis where composite order for more than one assessment years 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, 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 specified in para 3. No appeal shall be filed in respect of an assessment year or y ears 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 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 specified in para 3. In case where a composite order/ judgement involves more than one assessee. each assessee shall be dealt with separately.”
4. The said modifications shall come into effect from the date of issue of this Circular.
5. The same may be brought to the notice of all concerned.
6. This issues under section 268A of the Income-tax Act, 1961.”
Tax effect involved in the appeal of the Revenue is below Rs. 50 lakhs. There is no dispute that the Board’s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Revenue should have withdrawn/not pressed the present appeal in view of the aforesaid instruction since the tax effect in the instant appeal is less than the amount of Rs. 50 lakhs. The issue of applicability of the above circular to pending appeals has been decided by the Co-ordinate Bench in the case of Dinesh Madhavlal Patel [TS-469-ITAT-2019(Ahd)] 2019-TIOL-1556-ITAT-AHM dated 14th August, 2019.
In view of the above, Circular No. 17/2019 dated 08-08-2019 is applicable to all pending appeals. This appeal is, accordingly, not maintainable since the tax effect is less than Rs. 50 lakhs. We are, however, inclined to give liberty to Revenue to file Miscellaneous Application, if for any reason, at a later point of time, it turns out that the subject matter of the appeal falls under any instances stated in para No. 10 of the CBDT Circular No. 3/2018 dated 11/07/2018.
In the result, appeal of the Revenue is dismissed.
Order pronounced in the open court on this the 30th day of October, 2023.