ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE, BHILAI vs. SHRI MANOJ KUMAR BANSAL L/H OF LATE SHRI D.R. BANSAL, BHILAI

These 11 appeals by the Revenue relate to different assessees and different assessment years. It has been fairly admitted by the ld. DR that the tax effect in each of the appeals is less then 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 all the appeals under consideration is less than the revised monetary limit of Rs.50.00 lakh, we are not inclined to entertain such appeals.

Certain concerns were expressed about the retrospective or prospective operation of the Circular dated 08-08-2019. In this regard, it is relevant to note that the Ahmedabad Bench of the Tribunal vide its order dated 14-08-2019 in a bunch of appeals led by ITO Vs. Dinesh Madhavlal Patel (ITA No.1398/Ahd/2004) has laid down that the CBDT Circular No.17/2019 has retrospective effect and applies to all the pending appeals.

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.

In view of the foregoing discussion and following the precedent, we dismiss all the appeals filed by the Revenue.

It is however clarified that if subsequently it is found by the concerned AO that the tax effect in any particular appeal is more than the prescribed monetary limit of Rs.50.00 lakh or the case is covered by any exception, it will be open to the Revenue to move the Tribunal for taking necessary action.

In the result, all the appeals stands dismissed.