What did the Tribunal hold?

The Tribunal noted that the CBDT circular also applied retrospectively to pending appeals. Since the tax effect was below the enhanced monetary limit, the Revenue's appeal was dismissed.

The Revenue filed an appeal before the ITAT. However, a recent CBDT circular enhanced the monetary limit for filing appeals by the Department to Rs. 50 lacs. The tax effect in the present appeal was below this limit.

What were the issues?

Whether a pending appeal filed by the Revenue should be dismissed if the tax effect is below the enhanced monetary limit specified in a subsequent CBDT circular.

DCIT vs Sh. Vikas Jain, Ludhiana | ITAT Chandigarh 2019

Income Tax Appellate Tribunal, CHANDIGARH BENCH ‘A’, CHANDIGARH

Before: SMT.DIVA SINGH & SMT.ANNAPURNA GUPTA

Hearing: 28.08.2019Pronounced: 29.08.2019

आदेश/ORDER Per Annapurna Gupta, Accountant Member: The above appeal has been preferred by the Revenue challenging the order passed by the Commissioner of Income Tax Appeals(in short referred to as CIT(A)) u/s 250(6) of the Income Tax Act,1961,(hereinafter referred to as “Act”).

At the outset it was pointed out that the CBDT vide its recent Circular No.17/2019 dated 8.8.2019 had enhanced the monetary limit for filing the appeals by the Department before the I.T.A.T. from Rs.20 lacs to Rs.50 lacs

2 ITA No.621/Chd/2019 A.Y. 2010-11

and the tax effect involved in the present appeal fell within

this specified limit, and thus was liable to be withdrawn by

the Department as per the said Circular.

The Ld. DR fairly admitted that the tax effect involved

in the above appeal did not exceed Rs.50 lacs..

We have heard the parties. The modification made by

the recent CBDT Circular No.17/2019 has been considered

by the ITAT ,Chandigarh Bench in the case of ACIT Vs. M/s

Alchemist Ltd. in ITA No.1142 & 1143/Chd/2012 dated

26.12.2019, wherein after going through the contents of

CBDT Circular No.17/2019 it was noted that it has effected

enhancement in monetary limits for filing the appeals by the

Department to Rs.50 lacs and also that the said

enhancement applied to pending appeals also when read

alongwith earlier CBDT Circular No.3/2018. The findings in

that case are as under:

“4. We have considered the contentions of the parties before us and have also gone through the CBDT Circular No.17/2019 dated 8/8/19, and have noted the enhancement in monetary limits for filing appeal by the department to the ITAT to Rs.50 lacs from the earlier limit of Rs. 20 lacs which was specified vide Circular No.3/2018.We have also noted that the CBDT has vide this circular modified only para 3 and 5 of its earlier circular No.3/2018 leaving all other para’s intact. Para 13 of the earlier circular dealt with applicability of the circular retrospectively to pending appeals also and read as under:

3 ITA No.621/Chd/2019 A.Y. 2010-11

“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 para 3 above may be withdrawn/ not pressed.” 5. Since this para has not been modified by the recent circular, the enhanced monetary limits specified in the recent circular will apply to the pending appeals also. In view of the CBDT Circular No. 17/2019 (supra) read alongwith Circular No.3/2018,the present appeals of the Revenue is dismissed due to low tax effect.” 5. Accordingly, In view of the CBDT Circular

No.17/2019 read alongwith CBDT Circular No.3/2018, the

present appeal of the Revenue stand dismissed as

withdrawn.

It is, however, clarified that the dismissal of the above

appeal shall not be taken to be affirmation of the order of

the CIT(A) on merits. The legal issue raised by the Revenue

is being left open to be adjudicated in an appropriate case.

In the result, the appeal filed by the Revenue is

dismissed.

Order pronounced in the Open Court.

Sd/- Sd/- �दवा �संह अ�नपूणा� गु�ता (ANNAPURNA GUPTA) (DIVA SINGH) �याय�क सद�य/ Judicial Member लेखा सद�य/ Accountant Member �दनांक /Dated: 29th August, 2019 *रती*

4 ITA No.621/Chd/2019 A.Y. 2010-11

आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to :

अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar

DCIT, CC-I, LUDHIANA vs. SH. VIKAS JAIN, LUDHIANA

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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