ITO, WARD-2(3), CUTTACK vs. MANISH KUMAR SINGHANIA, CUTTACK

At the outset, ld At the outset, ld A.R. of the assessee submitted that the tax effect in A.R. of the assessee submitted that the tax effect in this appeal is Rs.1,79,126/ this appeal is Rs.1,79,126/-, which is below Rs.50 lakhs and, therefore, in , which is below Rs.50 lakhs and, therefore, in view of CBDT Circular No.17/2019 dated 8th August, 2019, the same is not view of CBDT Circular No.17/2019 dated 8 August, 2019, the same is not maintainable and should be dismissed. maintainable and should be dismissed.

I find that vide CBDT circular No.17/2019 in F.No.279/Misc.142/2007-ITJ(Pt) dated 8th August, 2019, the income tax department has further liberalized its policy for not filing appeals against the decisions of the appellate authorities in favour of the taxpayers, wherein tax involved is below certain threshold limits, and announced its policy decision not to file, or press, the appeals, before this Tribunal, against the appellate orders favourable to the assessee in the cases in which overall tax effect, excluding interest except when interest itself is in dispute, is Rs 50,00,000/- or less.

This circular, only enhances the monetary limits and gives further relaxation. The old circular, beyond any dispute or controversy, categorically applied to the pending appeals as on the date of issuance of circular.

The circular dated 8th August 2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular No. 3/2018 (subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of the said circular.

The Hon'ble Supreme Court in the case of The Commissioner of Income Tax-5,New Delhi Vs. Keshav Power Ltd., in SLP No.21497/2019 dated 16.08.2019 reported in 2019(8)TMI 811(SC) has also applied the Circular No.17/2019 dated 08.08.2019 and has dismissed the appeal holding as follows:

Learned D.R. submits that liberty may kindly be given to point out, upon necessary further verifications, and to seek recall the dismissal of appeal and restoration of the appeal in the case:

In the circumstances, respectfully following the principles laid down by the Hon"ble Supreme Court in the case of the Commissioner of Income Tax-5, New Delhi Vs. Keshav Power Ltd. (supra) and in the light of the above discussions, the appeal filed by the Revenue is found to be non- maintainable.

In the result, the appeal of Revenue stands dismissed. Order pronounced on 15/11/2019.