What did the Tribunal hold?

The Tribunal held that since the tax effect was below the revised monetary limit, the appeal filed by the Revenue was not maintainable. Consequently, the assessee's cross-objection was rendered infructuous.

The Revenue filed an appeal before the ITAT, and the assessee filed a cross-objection. The tax effect in the appeal was less than the revised monetary limit set by the CBDT for filing appeals.

What were the issues?

The primary issue was whether the appeal filed by the Revenue was maintainable given the revised monetary limits for appeals prescribed by the CBDT.

ITO vs M/S. S.P. Chemicals, Jalgaon | ITAT Pune 2020

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE – VIRTUAL COURT

Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI

For Respondent: Shri S.P. Walimbe

PER R.S.SYAL, VP : This appeal by the Revenue and Cross Objection by the assessee arise out of the order passed by the CIT(A)-2, Nashik on 11-09-2019 in relation to the assessment year 2009-10.

CO No.02/PUN/2020 M/s. S.P. Chemicals

There is no appearance from the side of the assessee despite notice. However, it has been fairly admitted by the ld. DR that the tax effect in this appeal is less than Rs.50.00 lakh.

Recently, the CBDT has issued circular No.17/2019 dated 08-08-2019 revising upward the monetary limits for filing of appeals by the Department in Income-tax Cases before various appellate forums. The earlier circular No.03/2018 dated 11-07- 2018 fixed monetary limit for filing of appeals by the Revenue before the Tribunal at Rs.20.00 lakh. Such limit has now been enhanced in the recent Circular dated 08-08-2019 to Rs.50.00 lakh.

Since tax effect in the instant appeal is less than the revised monetary limit of Rs.50.00 lakh, we are not inclined to entertain this appeal.

At this juncture, it is pertinent to note that the CBDT vide F.No.279/Misc/M-13/2018-ITJ dated 20-08-2019 has clarified that the revised monetary limits so mentioned in Circular No.17/2019 are applicable to all pending appeals. Not only that, it has further been directed to the competent authorities to withdraw all such appeals on or before 31-10-2019. However, it is made clear that if CO No.02/PUN/2020 M/s. S.P. Chemicals the tax effect in this particular appeal is found out to be more than the prescribed monetary limit of Rs.50.00 lakh or the case is covered by an exception, it will be open to the Revenue to move the Tribunal for taking necessary action.

In view of the foregoing discussion, we dismiss the appeal filed by the Revenue.

Since the appeal of the Revenue is dismissed, the Cross Objection filed by the assessee becomes infructuous and, therefore, the same is dismissed as such.

In the result, the appeal as well as the Cross Objection stand dismissed. Order pronounced in the Open Court on 21st August, 2020.

INCOME-TAX OFFICER, WARD - 2 (3), JALGAON vs. M/S. S.P. CHEMICALS, JALGAON

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments