What did the Tribunal hold?

The Tribunal noted that the tax effect did not exceed the revised monetary limit for filing appeals by the department. Therefore, the appeal was not maintainable.

The Department filed an appeal against the CIT(A)'s order for AY 2014-15. The tax effect in the appeal was less than Rs. 50 lakhs.

What were the issues?

Whether the Department's appeal is maintainable before the ITAT considering the revised monetary limits prescribed by the CBDT circular.

ITO vs Shri Dinkar Sharma, Alwar | ITAT Jaipur 2019

Income Tax Appellate Tribunal, JAIPUR BENCH ‘A’ JAIPUR

Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 870/JP/2017

Hearing: 20.08.2019Pronounced: 21.08.2019

PER: VIKRAM SINGH YADAV, A.M. This appeal by the department is directed against the order dated 08.09.2017 of ld. CIT (A)- 22, Alwar for the assessment year 2014-15. As per the grounds of appeal, the tax effect calculated by the AO in respect of the relief granted by the ld. CIT (A) which has been challenged in the present appeal is less than Rs. 50 lacs.

We have heard the ld. D/R as well as the ld. A/R. At the outset, we note that the tax effect in this appeal is not exceeding the monetary limit as revised by the CBDT vide Circular dated 08.08.2019 for the purpose of filing of appeal by the department before the Income Tax Appellate Tribunal from Rs. 20,00,000/- to Rs.

ITA No. 870-JP-2017 50,00,000/-. For ready reference, we reproduce the CBDT Circular No. 17 of 2019

dated 08.08.2019 as under :-

Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation.

Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation. Appeals/SLPs in Income- Monetary Limit (Rs.) Monetary Limit (Rs.) tax matters (previous limit) (Revised Limit) Before Appellate 20,00,000 50,00,000 Tribunal Before High Court 50,00,000 1,00,00,000 Before Supreme Court 1,00,00,000 2,00,00,000

• 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. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. • 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. • In case where a composite order/ judgement involves more than one assessee, each assessee shall be• dealt with separately.”

Accordingly, the appeal of the department is not maintainable being monetary limit

is less than/not exceeding Rs. 50,00,000/-.

ITA No. 870-JP-2017

The department is at liberty to file the Miscellaneous Application in case the tax effect in this appeal is found to be more then Rs. 50,00,000/- or the case falls in any of the exceptions of the circular.

In the result, appeal of the department is dismissed.

Order pronounced in the open court on 21/08/2019. ¼fot; iky jko½ ¼foØe flag ;kno½ (Vijay Pal Rao) (Vikram Singh Yadav) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 21/08/2019. Ganesh Kr. आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- ITO, Ward 2(1), Alwar 2. izR;FkhZ@ The Respondent- Shri Dinkar Sharma, Alwar 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 6. xkMZ QkbZy@ Guard File {ITA No. 870/JP/2017} vkns'kkuqlkj@ By order, सहायक पंजीकार@Aेेज. त्महपेजतंत

INCOME TAX OFFICER, WARD-2-1, ALWAR vs. SHRI DINKAR SHARMA, ALWAR

What did the Tribunal hold?

What were the facts?

What were the issues?

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