What did the Tribunal hold?

The Tribunal held that as per CBDT Circular No. 3 of 2018, appeals with a tax effect not exceeding Rs. 20 lacs are to be dismissed or withdrawn. The Revenue's appeals were therefore dismissed in limine.

The Revenue filed several appeals before the ITAT against various appellate orders of the CIT(A) for multiple assessment years. The tax effect in these appeals was found to be less than Rs. 20 lacs.

What were the issues?

The primary issue was the applicability of CBDT Circular No. 3 of 2018 regarding monetary limits for filing appeals before the ITAT.

The Dcitbharuch Circle, Bharuch vs V.India, Bharuch | ITAT Surat 2019

Income Tax Appellate Tribunal, AHMEDABAD

Before: SHRI WASEEM AHMED

Consolidated Appeals (9)

ITA 2462/Ahd/2012AY 2008-09

ITA 1608/Ahd/2016AY 2009-10

ITA 1966/Ahd/2016AY 2012-13

ITA 1969/Ahd/2016AY 2007-08

ITA 1971/Ahd/2016AY 2008-09

ITA 1973/Ahd/2016AY 2012-13

ITA 3007/Ahd/2016AY 2012-13

ITA 3012/Ahd/2016AY 2013-14

ITA 1737/Ahd/2017AY 2014-15

For Appellant: Ms. Anupama Singla, Sr.D.R

Hearing: 08.02.2019Pronounced: 11.02.2019

आदेश/O R D E R PER BENCH: The captioned appeals have been filed at the instance of the revenue against the different appellate orders of the Learned Commissioner of Income Tax (Appeals) [“CIT(A)” in short] relevant to Assessment Years 2008-09, 2009- 10, 2012-13, 2007-08, 2008-09, 2012-13, 2013-14, 2012-13, 2013-14, 2014-15.

At the time of the hearing, we observe that the tax effect in the appeals 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No. 3 of 2018 dated 11/07/2018 issued by CBDT recently all pending appeals filed by Revenue are liable to be dismissed/ withdrawn/ not pressed to reduce the litigation where the tax effect does not exceed the prescribed monetary limit, i.e., Rs.20 Lacs.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

4 ITA Nos. 2462/A/12, 1608, 1966, 1969, 1971, 1973, 2998, 3007 & 3012/A/16 & 1737/A/17 AYs :2008-09, 2009-10, 2012-13, 2007-08, 2008-09, 2012-13, 2013-14, 2012-13, 2013-14 & 2014-15 DCIT vs. M/s.V.India and 9 Ors.

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.

The Ld. DR for the Revenue fairly agreed on the applicability of the CBDT Circular No. 3 of 2018. Accordingly, the appeals of the Revenue are dismissed as not maintainable. However, the Revenue is on the liberty to move the miscellaneous application to recall the orders 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 appeals of the Revenue are dismissed.

In the result, all the ten appeals filed by the department are dismissed.

Order pronounced in the Court on 11th February, 2019 at Ahmedabad.

Sd/- Sd/-

(MADHUMITA ROY) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 11 /02/2019 Priti Yadav, Sr.PS

5 ITA Nos. 2462/A/12, 1608, 1966, 1969, 1971, 1973, 2998, 3007 & 3012/A/16 & 1737/A/17 AYs :2008-09, 2009-10, 2012-13, 2007-08, 2008-09, 2012-13, 2013-14, 2012-13, 2013-14 & 2014-15 DCIT vs. M/s.V.India and 9 Ors.

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)-Surat. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad. 5. 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, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation …………………….9.2.2019 2. Date on which the typed draft is placed before the Dictating Member ……………11.2.2019 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S ……………………… 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S…….11.2.19 7. Date on which the file goes to the Bench Clerk…………………11.2.19 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order………………

THE DCITBHARUCH CIRCLE, BHARUCH vs. V.INDIA, BHARUCH

What did the Tribunal hold?

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