What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable due to the CBDT circular which restricts appeals with a tax effect below Rs. 50,00,000/-. The Revenue was granted liberty to seek recall if the tax effect was miscalculated or other exceptions applied.

The Revenue filed an appeal before the ITAT. The tax effect involved in the appeal was below the monetary limit set by a CBDT circular for filing appeals.

What were the issues?

Whether the appeal filed by the Revenue is maintainable in light of the CBDT circular enhancing the monetary limit for appeals?

DCIT vs Hindustan Sakh Sahkarita, Gwalior | ITAT Agra 2019

Before: Shri Laliet Kumar & Dr. Mitha Lal Meena

Hearing: 19.09.2019Pronounced: 19.09.2019

In the Income-Tax Appellate Tribunal, Agra Bench, Agra

Before : Shri Laliet Kumar, Judicial Member And Dr. Mitha Lal Meena, Accountant Member

ITA No. 301/Agr/2018 Assessment Year: 2008-09

DCIT, Circle 2(1), vs. Hindustan Sakh Sahkarita, Gwalior Vinod Market, Maina Wali Gali, Dal Bazar, Agra. (Appellant) PAN : AABTT2836L (Respondent)

Appellant by Sh. Sunil Bajpai, CIT/DR Respondent by Sh. Rajendra Sharma, Advoate

Date of Hearing 19.09.2019 Date of Pronouncement 19.09.2019

ORDER Per Laliet Kumar, J.M.: This appeal of the Revenue filed by the assessee called into question the

correctness of the relief granted by the CIT(A) where the tax effect involved does

not exceed Rs. 50,00,000/-.

Vide circular No. 17/2019 dated 8th August 2019, the Central Board of Direct

Taxes has 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, including surcharge but excluding interest, is Rs

50,00,000/- or less. This monetary limit, which was Rs 20,00,000 till 7th August

ITA No. 301/Agr/2018 2

2019, has been in effect enhanced to Rs.50 lakhs and the relief so granted is

retrospective in nature inasmuch as it will not only apply to future appeals but also

to the pending appeals. As a step towards management of litigation, the CBDT has

decided to further enhance the monetary limits for filing the appeals in income tax

cases vide para 3 and Para 5 of the aforesaid circular to remove the agony of

uncertainty to the taxpayers who have been successful before the lower appellate

authorities.

The ld. Counsel for the assessee contended that in view of the aforesaid CBDT

circular dated 8th August 2019, the appeal of the Revenue is not maintainable and is

liable to be dismissed as withdrawn.

The ld. DR for the respondent did not oppose the action proposed by the

tribunal, in principle, but requested that legitimate interest of revenue authorities

be suitably protected so that the appeals which are found not covered by the

aforesaid circular are reinstated and decided on merits. He submitted that liberty

may be given to point out, upon necessary further verifications, and to seek recall

the dismissal of appeal and restoration of the appeal if the tax effect exceeds Rs

50,00,000. None opposes this prayer. We, therefore, accept the same. We make it

clear that the appellant shall be at liberty to point out that the present appeal has

been so dismissed summarily either owing to wrong computation of tax effect or

ITA No. 301/Agr/2018 3

owing to such cases being covered by the permissible exceptions, or for any other

reason, and we will take appropriate remedial steps in this regard.

With the above observations, the appeal of the Revenue is dismissed.

Order pronounced in the open court on 19th September, 2019.

Sd/- Sd/- (Dr. Mitha Lal Meena) (Laliet Kumar) Accountant Member Judicial member

Dated: 19.09.2019 *aks* Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order Assistant Registrar Income Tax Appellate Tribunal Agra Bench, Agra

DCIT CIRCLE-2(1), GWALIOR vs. HINDUSTAN SAKH SAHKARITA, GWALIOR

What did the Tribunal hold?

What were the facts?

What were the issues?

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