DCIT, CC-II, LUDHIANA vs. M/S G.S. AUTOCOMP PVT. LTD., LUDHIANA

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ITA 863/CHANDI/2019Status: DisposedITAT Chandigarh27 August 2019AY 2009-107 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that as per CBDT Circular No. 17/2019, read with Circular No. 3/2018, appeals with a tax effect below Rs. 50 lakhs are to be dismissed. The enhanced limits apply to pending appeals as well.

What were the facts?

The Revenue filed several appeals before the ITAT. The tax effect in all these appeals was below Rs. 50 lakhs. The CBDT had recently enhanced the monetary limit for filing appeals by the department to Rs. 50 lakhs.

What were the issues?

Whether appeals filed by the Revenue with a tax effect below the enhanced monetary limit are to be dismissed as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 250(6)

AI-generated summary — verify with the full judgment below

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

Before: SMT.DIVA SINGH & SMT.ANNAPURNA GUPTA

For Respondent: Shri Chandrajit Singh, CIT DR
Hearing: 27.08.2019Pronounced: 29.08.2019

Heard together (9 matters)

ITA No.812/Chd/2019
ITA No.981/Chd/2019
ITA No.698/Chd/2019
ITA No.1055/Chd/2019
ITA No.719/Chd/2019
ITA No.1499/Chd/2018
ITA No.384/Chd/2019
ITA No.804/Chd/2019
ITA No.663/Chd/2019

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

आदेश/ORDER

Per Annapurna Gupta, Accountant Member: The above appeals, pertaining to different assesses,

have 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’). The tax effect

involved in all the appeals does not exceed Rs.50 lacs and

have been fixed for hearing before us on account of the

enhancement in the monetary limit for filing the appeals by

the Department to Rs.50 lacs by the CBDT vide its Circular

No.17/2019.

2.

Before us, 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 appeals by the Department

before the I.T.A.T. from Rs.20 lacs to Rs.50 lacs and since

the tax effect involved in all the above appeals fell within this specified limit, the appeals were liable to be withdrawn

by the Department as per the said Circular. The Ld. DR

fairly admitted that the tax effect involved in all the above

appeals did not exceed Rs.50 lacs..

6 ITA Nos.863 to 865/Chd/2019 & Ors. A.Ys. 2009-10, 2011-12 & 2012-13

3.

We have heard the parties. The modification made by

the recent CBDT Circular No.17/2019 ,has been dealt with

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 the

Circular it has been 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 applies 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: “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

7 ITA Nos.863 to 865/Chd/2019 & Ors. A.Ys. 2009-10, 2011-12 & 2012-13

appeals of the Revenue is dismissed due to low tax effect.” 4. Accordingly, in view of the CBDT Circular No.17/2019 read alongwith CBDT Circular No.3/2018, the present appeals of the Revenue stand dismissed as withdrawn.

5.

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.

6.

In the result, all the appeals filed by the Revenue are 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* आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to :

1.

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

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