What did the Tribunal hold?

The Tribunal noted that as per CBDT Circular No. 3 of 2018, appeals with a tax effect below Rs. 20 lacs are to be dismissed. The Revenue's counsel agreed to the applicability of this circular.

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2008-09. The tax effect in the appeal was less than Rs. 20 lacs.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the low tax effect as per the prevailing CBDT circular.

ACIT vs Shri Jatindra Howandas Mohan… | ITAT Rajkot 2019

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI MAHAVIR PRASAD & SHRI WASEEM AHMED

For Respondent: Mr. Ankit Gokani, AR

आदेश / O R D E R

PER MAHAVIR PRASAD, JUDICIAL MEMBER:

The captioned appeal has been filed at the instance of the revenue against the appellate order of the Learned Commissioner of Income Tax (Appeals)-Jamnagar [“CIT(A)” in short] dated 30/06/2011 relevant to Assessment Year 2008-09.

At the time of the hearing, we observe that the tax effect in the appeal filed by the Revenue is less than Rs. 20 lacs. As per the Circular No. 3 of 2018 dated 11/07/2018 issued by CBDT recently all pending appeals filed by Revenue are liable to be dismissed/ withdrawn/ not

ITA No.325/RJT/2011 ACIT vs. Shri Jatindra Howandas Mohan Asst.Year - 2008-09

- 2 - pressed to reduce the litigation where the tax effect does not exceed the prescribed monetary limit, i.e., Rs.20 Lacs. The relevant extract of the circular is reproduced below: “2. In supersession of the above Circular, it has been decided by the Board that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified below. 3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:

S. Appeals/ SLPs in Income-tax matters Monetary Limit No. (Rs.) 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1,00,00,000

The monetary limit for filing the appeals by the Revenue before the Tribunal has been increased to Rs. 20 Lacs. It is also clarified in the said Circular that the said monetary limit is applicable retrospectively even to the appeals pending before the Tribunal. The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.20 lacs may be withdrawn / not pressed.

In the case on hand, it was noticed that the tax effect on the disputed issues raised by the Revenue is claimed to be less Rs.20 Lacs. Therefore appeals of the Revenue are required to be dismissed in limine in terms of the above circular.

ITA No.325/RJT/2011 ACIT vs. Shri Jatindra Howandas Mohan Asst.Year - 2008-09

- 3 - 3. The Ld. DR for the Revenue fairly agreed on the applicability of the CBDT Circular No. 3 of 2018. Accordingly, the appeal of the Revenue are dismissed as not maintainable. However, the Revenue is on the liberty to move the miscellaneous application to recall the order if the tax effect exceeds the threshold limit or the cases of the Revenue falls in any of the exception provided in the aforesaid CBDT Circular in any manner. The MA shall be filed within the prescribed time. Hence the appeal of the Revenue are dismissed.

In the result, the appeal filed by the department is dismissed. This Order pronounced in Open Court on 28/02/2019

Sd/- Sd/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER

Ahmedabad; Dated 28/02/2019 ट�.सी.नायर, व.�न.स./T.C. NAIR, Sr. PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)-Jamnagar 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण,राजोकट/DR,ITAT, Rajkot 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, राजोकट / ITAT, Rajkot

THE ACIT, CIRCLE-3, JAMNAGAR vs. SHRI JATINDRA HOWANDAS MOHAN, JAMNAGAR

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