What did the Tribunal hold?

The Tribunal held that the revised monetary limits for filing appeals by the Department, as per CBDT Circular No. 17/2019, are applicable to all pending appeals. These limits were enhanced to Rs. 50.00 lakh.

The Revenue filed 342 appeals and assessees filed 7 cross objections before the ITAT. The Revenue admitted 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 are applicable to pending appeals and if the appeals should be entertained based on these limits.

ACIT vs M/S. Poona Club Ltd. | ITAT Pune 2019

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

Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY

For Respondent: Shri Shanshank Deogadkar, CIT-DR, Shri Kishore Phadke, S.N. Puranik, C.H, Dr. Prajag Jha, A.N. Kothari, Abhay Avchat, Pramod

Hearing: 29.08.2019Pronounced: 29.08.2019

Heard together (2 matters)

C.O.32/PUN/2019

C.O.33/PUN/2019

Read from the judgment's own cause title. This page is filed under one of them.

आदेश आदेश / ORDER आदेश आदेश

These 342 appeals by the Revenue and 07 Cross objections

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 objections filed by the assesses have 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

an exception, it will be open to the Revenue to move the Tribunal

for taking necessary action.

In the result, all the appeals and cross objections stand

dismissed.

Order pronounced in the Open Court on 29th August, 2019.

Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 29th August, 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 29-08-2019 Sr.PS 2. Draft placed before author 29-08-2019 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. *

ASSISTANT COMMISSIONER OF INCOME TAX, PUNE vs. M/S. POONA CLUB LTD., PUNE

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