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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. B.R. BASKARAN & SH. N.K.CHOUDHRY
IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. B.R. BASKARAN, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA No.3282/Chne/2016 Assessment Year:2012-13
Asst. CIT, Vs. M/s. Nypro Forbes Products Ltd., Corporate Circle 4(2), Sub Division, Plot No.52, Chenni-600 034 SIPCOT Industrial Complex, Hosur, Dharmapuri District-635 126 [PAN:AAACN 2394P] (Appellant) (Respondent)
ITA No.439(Asr)/2018 Assessment Year:2014-15
Dy. CIT Vs. M/s. SSF Plastpro Ltd. Circle-4, Amritsar (Formerly M/s Nypro Forbes Products Limited) Sub Division, Plot No.52, SIPCOT Industrial Complex, Hosur, Tamilnadu-635126 [PAN:AAACN 2394P] (Appellant) (Respondent)
Appellant by: Sh. Charan Dass (Ld. DR) Respondent by: Sh. Padam Bahl (Ld. CA) Date of hearing: 19.08.2019 Date of pronouncement: 19.08.2019 ORDER PER BENCH The Revenue Department has preferred these two appeals against the orders impugned herein passed by the Ld. CIT(A) in the captioned matters u/s 250(6) of the Act, 1961 (hereinafter called as the ‘Act’).
ITA No. 3282 /Chne/2016 (A.Y.2012-13) 2 ITA No. 439 /Asr/2018 (A.Y.2014 -15)
At the outset it is observed that tax effect involved in these appeals is not more than 50 lacs, therefore, these appeals are liable to be dismissed as not maintainable in view of the latest CBDT Circular No.17/2019, dated 08.08.2019. The Ld. DR though agreed that the tax effect in the instant appeals is not exceeding the threshold limit of 50 lacs as prescribed under Circular No.17/2019 (supra), however, emphasized that the said Circular is applicable from the date of issue of circular i.e. 8th August, 2019 and therefore, the effect to the circular cannot be given retrospectively, as para no.4 of the Circular prescribes "the said modifications shall come into effect from the date of issue of this Circular", therefore, inference can be drawn that from 8th August, 2019 onwards, the Revenue Department is precluded from filing the appeals against the orders in which the tax effect limit does not exceed as specified in the Circular, but not otherwise applicable to the pending appeals.
Having considered the tax effect involved in these appeals and the issue raised by the Ld. DR.
The ITAT Bench at Ahmedabad in Income Tax Officer Ward 3(2), Ahmedabad Vs Dinesh Madhavlal Patel {ITA No.1398/Ahd/2004 relevant to the A.Y.1998-99} as a lead case, vide its order dated 14th August, 2019 thoroughly considered the Circular No.17/2019 (supra) in conjoint with CBDT Circular No.03/2018 and resolved the controversy with regard to the effect of the Circular qua retrospective or prospective. For the sake of brevity and ready reference, the concluding part of the order is reproduced herein below.
ITA No. 3282 /Chne/2016 (A.Y.2012-13) 3 ITA No. 439 /Asr/2018 (A.Y.2014 -15)
Having considered the rival submissions and having perused the material on record, we do not have slightest of hesitation in holding that the concession extended by the CBDT not only applies to the appeals to be filed in future but it is also equally applicable to the appeals pending for disposal as on now. Our line of reasoning is this. The circular dated 8th August 2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular no 3 of 2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of the said circular. This is evident from the following extracts from the circular dated 8th August 2019: 2. As a step towards further management of litigation. it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed. para 5 of the circular is substituted by the following para: “5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the
ITA No. 3282 /Chne/2016 (A.Y.2012-13) 4 ITA No. 439 /Asr/2018 (A.Y.2014 -15)
disputed issues exceeds the monetary limit specified in para 3. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In case where a composite order/ judgement involves more than one assessee, each assessee shall be dealt with separately” 4. The said modifications shall come into effect from the date of issue of this Circular. 6. Clearly, all other portions of the circular no. 3 of 2018 (supra) have remained intact. The portion which has remained intact includes paragraph 13 of the aforesaid circular which is as follows: 13. This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. Pending appeals below the specified tax limits in pare 3 above may be withdrawn/ not pressed. 7. In view of the above discussions, we hereby hold that the relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8th August 2019 (supra) shall be applicable to the pending appeals in addition to the appeals to be filed henceforth. 8. Learned Commissioner (DR) then submits liberty may kindly be given to point out, upon necessary further verifications, and to seek recall the dismissal of appeals and restoration of the appeals in the cases (i) in which it can be demonstrated that the appeals are covered by the
ITA No. 3282 /Chne/2016 (A.Y.2012-13) 5 ITA No. 439 /Asr/2018 (A.Y.2014 -15)
exceptions, and (ii) which are inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular (supra), exceeds Rs 50,00,000. None opposes this prayer; we accept the same. We make it clear that the appellants shall be at liberty to point out the cases which are wrongly included in the appeals so summarily dismissed, either owing to wrong computation of tax effect or owning to such cases being covered by the permissible exceptions- or for any other reason, and we will take appropriate remedial steps in this regard. 9. In the light of the above discussions, all the appeals stand dismissed as withdrawn. As the appeals filed by the Revenue are found to be non-maintainable and as all the related cross-objections of the assessee arise only as a result of those appeals and merely support the order of the CIT(A), the cross objections filed by the assessee are also dismissed as infructuous. Ordered, accordingly. 10. As we part with the matter, we must place on record our deep appreciation to our own team which has painstakingly identified all these low tax effect appeals in the long weekend and less than two working days, to the Principal Chief Commissioner of Income Tax Gujarat, as also the learned Departmental Representatives, for his immense help, cooperation and active involvement in speedily disposing of these appeals, and, of course, to the ITAT Bar Association Ahmedabad for their whole hearted cooperation in this special drive. The circular was issued on Thursday the 8th August 2019, and within two working days and the long weekend, today on 14th August 2019, all the appeals stand disposed of. It’s only a team effort and whole hearted cooperation of all the stakeholders that can enable us to so speedily implement taxpayer friendly initiatives of the Government of India. The taxpayer relief involved in these appeals, including interest and the other corollaries, is estimated to be well over Rs 350 crores. The lead case before us is an appeal filed over fifteen years ago by the Income Tax Officer and it deals with an
ITA No. 3282 /Chne/2016 (A.Y.2012-13) 6 ITA No. 439 /Asr/2018 (A.Y.2014 -15)
assessment year which pertains to the period over twenty years ago. Yet, the matter had not reached the finality and the revenue’s challenge to the relief granted by the Commissioner (Appeals) had remained undecided. That is nothing but prolonged agony of uncertainty to the taxpayers. It is indeed an appreciable goodwill gesture by the Government, for so many taxpayers, on the eve of this Independence Day and offering them freedom from the prolonged mental agony and uncertainty of litigation. 11. In the results, all the appeals are dismissed as withdrawn and the cross objections are dismissed as infructuous. Pronounced in the open court today on the 14th August, 2019.
In the aforesaid judgment, the Co-ordinate Bench of ITAT Ahmedabad, has elaborately discussed the probable issues and held that the concession extended by the CBDT not only applies to the appeals to be filed in future but it is also equally applicable to the appeals pending for disposal as on now on the reasoning that the circular dated 8th August 2019 is not a standalone circular, it is to be read in conjunction with the CBDT circular no 3 of 2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of the said circular (pertains to monetary limit for filling the appeals {emphasis ours} ) . All other portions of the circular no. 3 of 2018 (supra) have remained intact. The portion which has remained intact includes paragraph 13 of the aforesaid circular which prescribe that this Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. Pending appeals below the specified tax limits in pare 3 above may be withdrawn/ not pressed.
ITA No. 3282 /Chne/2016 (A.Y.2012-13) 7 ITA No. 439 /Asr/2018 (A.Y.2014 -15)
Hence respectfully following the aforesaid judgment of Ahmedabad bench of ITAT, and while reading the CBDT Circulars no. 17/2019 and no. 03 of 2018 conjointly, we do not have hesitation to dismiss the appeals under consideration filed by the Revenue Department as dismissed as withdrawn.
The liberty is granted to the Revenue Department to seek recall of the order in case, it found that the captioned appeals falls within the exception as prescribed in Circular No.03/2018 (supra) and/or having involved the tax effect more than Rs. 50 lacs.
In the result, the appeals filed by the Revenue Department stands dismissed as withdrawn.
Order pronounced in the open Court on 19/08/2019.
Sd/- Sd/- (B.R.BASKARAN) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 19/08/2018 /PK/ Ps. Copy forwarded to: 1. The Appellant 2. The Respondent 3. The CIT 4. Then CIT(Appeals) 5. SR DR, I.T.A.T. Amritsar 6. Guard File True Copy By Order