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Before: Shri Laliet Kumar & Dr. Mitha Lal Meena
In the Income-Tax Appellate Tribunal, Agra Bench, Agra
Before : Shri Laliet Kumar, Judicial Member And Dr. Mitha Lal Meena, Accountant Member
ITA No. 470/Agr/2018 Assessment Year: 2011-12
DCIT, Circle 2(1)(1), vs. M/s. KIE Engineering Pvt. Ltd., Agra. 74-B, Industrial Estate, Nunhai, Agra. (Appellant) PAN : AAACK4841Q (Respondent)
Appellant by Sh. Waseem Arshad, Sr. DR Respondent by Sh. R. C. Tomar, I.T.P.
Date of Hearing 06.09.2019 Date of Pronouncement 11.09.2019
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. 470/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liable to be dismissed as withdrawn.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. 470/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 11th September, 2019.
Sd/- Sd/- (Dr. Mitha Lal Meena) (Laliet Kumar) Accountant Member Judicial member
Dated: 11.09.2019 *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