What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable in light of CBDT Circular No. 17/2019 and the Supreme Court's decision in Keshav Power Ltd. The Revenue was granted liberty to point out any exceptions or errors.

The Revenue filed an appeal against the CIT(A)'s order. The assessee's AR submitted that the tax effect was below the threshold limit specified by CBDT Circular No. 17/2019, making the appeal not maintainable.

What were the issues?

Whether the Revenue's appeal is maintainable given the tax effect and CBDT circulars on monetary limits for filing appeals.

ITO vs Manish Kumar Singhania | ITAT Cuttack 2019

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

Before: SHRI

For Appellant: Shri D.K.Sheth

For Respondent: Shri J.K.Lenka

This is an appeal filed by the This is an appeal filed by the revenue against the order of against the order of the CIT(A), Cuttack dated 27.6.2019 , Cuttack dated 27.6.2019 for the assessment year for the assessment year 2014-15.

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.

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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:

P a g e 2 | 4 "Since the tax effect involved in the matter is less than Rs.2 crores, going by the latest circular issued by the CBDT, we see no reason to interfere in this matter. The Special Leave Petition is dismissed, leaving all the questions of law open".

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:

(i) in which it can be demonstrated that the appeals are covered by the exceptions, and (ii) which are inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular (supra), exceeds Rs 50,00,000. 8. I accept the request of ld D.R. I also make it clear that the appellant shall be at liberty to point out the case which is wrongly included in the appeal so summarily dismissed, either owing to wrong computation of tax effect or owning to such cases being covered by the permissible exceptions or for any other reason, and we will take appropriate remedial steps in this regard.

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.

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10.

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

Sd/- (Chandra Mohan Garg) JUDICIAL MEMBER Cuttack; Dated 15 /11/2019 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Income Tax Officer Ward 2(3), Cuttack 2. The Respondent. Manish Kumar Singhania,, C/O. Singhania Enterprises, Matha Sahi, Choudhry Bazar, Cuttack 3. The CIT(A), Cuttack 4. Pr.CIT- , Cuttack 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// By order

Sr.Pvt.secretary ITAT, Cuttack

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

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