What did the Tribunal hold?

The Tribunal noted that CBDT Circular No. 17/2019 revised the monetary limit for filing appeals by the department to Rs. 50.00 lakh and has retrospective effect. Since the tax effect in all appeals was below this limit, the appeals were dismissed.

The Revenue filed 34 appeals and one cross-objection before the ITAT. It was admitted by the Revenue that the tax effect in each appeal was less than Rs. 50.00 lakh.

What were the issues?

Whether the revised monetary limits for filing appeals by the Revenue, as per CBDT Circular No. 17/2019, apply to pending appeals and if appeals with tax effect below the revised limit should be entertained.

DCIT vs Amrutlal Gangaji Choudhary | ITAT Pune 2019

Income Tax Appellate Tribunal, PUNE BENCH “C”, PUNE

Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI

For Respondent: Shri T.Vijaya Bhaskar Reddy, CIT-DR, Shri Jeevan Bachhav, DCIT

Hearing: 16.10.2019Pronounced: 16.10.2019

आदेश / ORDER आदेश आदेश आदेश

These 34 appeals by the Revenue and 01 Cross objection by

the assessees relate to different assessees and different assessment

years. It has been fairly admitted by the ld. DR that the tax effect in

each of the appeals is less then Rs.50.00 lakh.

Recently, the CBDT has issued circular No.17/2019 dated

08-08-2019 revising upward the monetary limits for filing of

appeals by the Department in Income-tax Cases before various

appellate forums. The earlier circular No.03/2018 dated 11-07-2018

fixed monetary limit for filing of appeals by the Revenue before the

Tribunal at Rs.20.00 lakh. Such limit has now been enhanced in the

recent Circular dated 08-08-2019 to Rs.50.00 lakh. Since tax effect

in all the appeals under consideration is less than the revised

monetary limit of Rs.50.00 lakh, we are not inclined to entertain

such appeals.

Certain concerns were expressed about the retrospective or

prospective operation of the Circular dated 08-08-2019. In this

regard, it is relevant to note that the Ahmedabad Bench of the

Tribunal vide its order dated 14-08-2019 in a bunch of appeals led

by ITO Vs. Dinesh Madhavlal Patel (ITA No.1398/Ahd/2004) has

laid down that the CBDT Circular No.17/2019 has retrospective

effect and applies to all the pending appeals.

At this juncture, it is pertinent to note that the CBDT vide

F.No.279/Misc/M-13/2018-ITJ dated 20-08-2019 has clarified that

the revised monetary limits so mentioned in Circular No.17/2019

are applicable to all pending appeals. Not only that, it has further

been directed to the competent authorities to withdraw all such

appeals on or before 31-10-2019.

In view of the foregoing discussion and following the

precedent, we dismiss all the appeals filed by the Revenue. The

Cross objection filed by the assessee has consequently become

infructuous.

It is however clarified that if subsequently it is found by the

concerned AO that the tax effect in any particular appeal is more

than the prescribed monetary limit of Rs.50.00 lakh or the case is

covered by any exception, it will be open to the Revenue to move

the Tribunal for taking necessary action.

In the result, all the appeals and the cross objection stands

dismissed.

Order pronounced in the Open Court on 16th October, 2019.

Sd/- Sd/- (S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 16th October, 2019 सतीश

आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to: अ�ेिषत आदेश आदेश आदेश अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. 3. The CIT(A) concerned 4. The CIT concerned िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे 5. “सी” / DR ‘C’, ITAT, Pune; 6. गाड� फाईल / Guard file. आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

Date 1. Draft dictated on 16-10-2019 Sr.PS 2. Draft placed before author 16-10-2019 Sr.PS 3. Draft proposed & placed JM before the second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *

DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 8, PUNE vs. AMRUTLAL GANGAJI CHOUDHARY, PUNE

What did the Tribunal hold?

What were the facts?

What were the issues?

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