What did the Tribunal hold?

The Tribunal held that the appeals were not maintainable as the tax effect did not exceed the revised monetary limit of Rs. 50,00,000/- for filing appeals by the Department, as per CBDT Circular No. 17 of 2019.

The Department filed appeals against orders of the CIT(A) for assessment years 2010-11 and 2012-13. The tax effect in these appeals was less than Rs. 50,00,000/-.

What were the issues?

Whether the Department's appeals are maintainable before the ITAT when the tax effect is below the revised monetary limit prescribed by the CBDT.

ACIT vs M/S Mangalam Cement Ltd., Kota | ITAT Jaipur 2019

Income Tax Appellate Tribunal, JAIPUR BENCHES,”B” JAIPUR

Before: SHRI RAMESH C. SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 718 & 719/JP/2019

Hearing: 20/08/2019Pronounced: 21/08/2019

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR Jh jes’k lh0 ’kekZ] ys[kk lnL; ,oa Jh fot; iky jko] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH C. SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 718 & 719/JP/2019 fu/kZkj.k o"kZ@Assessment Year : 2010-11 & 2012-13 cuke The ACIT, M/s Mangalam Cement Ltd. Vs. Circle-1, Morak, Aditya Nagar, Kota. Ram Ganj Mandi, Kota. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AABCM 6602 Q vihykFkhZ@Appellant izR;FkhZ@Respondent jktLo dh vksj ls@ Revenue by : Ms Anuradha (JCIT) fu/kZkfjrh dh vksj ls@ Assessee by: Shri Varun Bansal (C.A) lquokbZ dh rkjh[k@ Date of Hearing : 20/08/2019 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 21/08/2019 vkns'k@ ORDER PER: VIJAY PAL RAO, J.M. These two appeals by the Department are directed against two separate orders of CIT(A), Kota dated 07.02.2019 & 12.03.2019 for the assessment years 2010-11 & 2012-13 respectively. As per the ground of appeal, the tax effect calculated by the AO in respect of the relief granted by the ld. CIT (Appeals) which has been challenged in the present appeal is less than Rs. 50,00,000/-. & 719/JP/2019 ACIT vs. M/s Mangalam Cement Ltd.

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. 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 Monetary Limit tax matters (Rs.) (previous (Rs.) limit) (Revised Limit) Before Appellate Tribunal 20,00,000 50,00,000 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 2 & 719/JP/2019 ACIT vs. M/s Mangalam Cement Ltd. 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/ judgment involves more than one assessee, each assessee shall be• dealt with separately.”

Accordingly, the appeals of the department are not maintainable being monetary limit is less than/not exceeding Rs. 50,00,000/-.

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 are dismissed.

Order pronounced in the open court on 21/08/2019

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, KOTA vs. M/S MANGALAM CEMENT LTD., KOTA

What did the Tribunal hold?

What were the facts?

What were the issues?

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