Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, CHANDIGARH BENCH ‘A’, CHANDIGARH
Before: SHRI SANJAY GARG & SMT.ANNAPURNA GUPTA
आदेश/ORDER Per Annapurna Gupta, Accountant Member: Both the above appeals relate to the same assessee and have been preferred by the Revenue against separate orders of the Commissioner of Income Tax (Appeals), Chandigarh [(in short ‘CIT(A)’] both dated 31.8.2012 relating to assessment years 2007-08 and 2008-09 respectively, passed
2 ITA Nos.1142 & 1143/Chd/2012 A.Ys. 2007-08 * 2008-09
u/s 250(6) of the Income Tax Act, 1961 (hereinafter referred
to as ‘Act’).
At the outset, the Ld. AR pointed out that the CBDT,
vide its recent Circular No.17/2019 dated 8/8/19, has
enhanced the monetary limit for filing appeals by the
department before the ITAT from Rs. 20 lacs to Rs. 50 lacs.
Copy of the aforesaid circular was placed before us.
Referring to the same, Ld.Counsel for the assessee pointed
out that the CBDT had vide this circular modified paras 3
and 5 of the earlier circular no. 3/2018, which dealt with
the monetary limits for filing appeals and the method of
calculating tax effect involved in composite orders passed,
respectively, leaving all other conditions specified in the
earlier circular intact. Our attention was drawn to the
relevant contents of the Circular as under:
Circular No. 17/2019 F.No.279/Misc. 142/2007-ITJ(Pt.) Government of India Department of Revenue Central Board Direct Taxes Judicial Section New Delhi. 8th August 2019 Subject: - Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 -Measures for reducing litigation. Reference is invited to the Circular No.3 of 2018 dated 11.07.2018 (the Circular) of Central Board of Direct Taxes (the Board) and its amendment dated 20th August. 2018 vide which monetary limits for filing of income tax appeals by the Department before Income Tax
3 ITA Nos.1142 & 1143/Chd/2012 A.Ys. 2007-08 * 2008-09
Appellate Tribunal. High Courts and SLPs/appeals before Supreme Court have been specified. Representation has also been received that an anomaly in the said circular at para 5 may be removed. 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 Monetary Limit (Rs.) matters 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, inthe 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 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. 5. The same may be brought to the notice of all concerned. 6. This issues under section 268A of the Income-tax Act, 1961.” 3. It was therefore stated that the applicability of the
Circular retrospectively to pending appeals as specified in
4 ITA Nos.1142 & 1143/Chd/2012 A.Ys. 2007-08 * 2008-09
para 13 of the earlier circular would remain. He therefore
stated that since the tax effect involved in the present case
is less than Rs. 50 lacs, the appeals are covered by the
aforesaid circular and are liable to be dismissed . The Ld.
DR has also fairly admitted that CBDT circular No. 17/2019
is applicable to both the appeals.
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.
5 ITA Nos.1142 & 1143/Chd/2012 A.Ys. 2007-08 * 2008-09
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.
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, both the Departmental appeals are dismissed.
Order pronounced in the Open Court.
Sd/- Sd/- संजय गग� अ�नपूणा� गु�ता (ANNAPURNA GUPTA) (SANJAY GARG) �याय�क सद�य/Judicial Member लेखा सद�य/Accountant Member �दनांक /Dated: 26th 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