What did the Tribunal hold?

The Tribunal held that the appeals filed by the Revenue were liable to be dismissed due to low tax effect, as they were below the revised monetary limit set by the CBDT circular. Consequently, the cross-objections filed by the assessees were also dismissed as infructuous.

The Revenue filed a bunch of appeals before the ITAT. The CBDT revised the monetary limit for filing appeals to Rs. 20 lakhs, making the tax effect in these appeals fall below the threshold.

What were the issues?

Whether appeals filed by the Revenue are maintainable when the tax effect is below the revised monetary limit prescribed by CBDT circular. Whether cross-objections become infructuous if the main appeals are dismissed on maintainability grounds.

DCIT vs Shri Mahesh Sharma, Raipur | ITAT Raipur 2019

Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: SHRI PARTHA SARATHI CHAUDHURY & DR. MITHA LAL MEENA

For Appellant: Shri G.S. Agrawal (For Sl. No.1, 2), Shri R.B. Doshi ( For Sl. No.3 to 20)

For Respondent: Shri A.K. Laskar (For Sl. No.1), Shri D.K. Jain (For Sl. No.2), Shri V.B. Sargar (For Sl. No. 3 to 20), Shri Sanjay Kumar (For Sl. No.21)

Hearing: 16.05.2019Pronounced: 16.05.2019

आदेश / ORDER PER BENCH : These bunch of appeals by the Revenue are filed against the respective orders of the Commissioner of Income Tax (Appeals) for the assessment year/s mentioned in the title against the name of each of the abovementioned assessees. The impugned order/s have been passed under different sections of the Income Tax Act, 1961 (in short „the Act‟). The assessee has preferred cross objections against the appeal filed by the Revenue as captioned above in the cause title.

These bunch of appeals filed by the Revenue along with the cross objections relating to different assessees were heard together and are being disposed of by this consolidated order for the sake of convenience.

4 ITA No. 169/BIL/2016 & Ors. Low Tax Effect

The CBDT vide Circular No.3/2018, dated 11.07.2018 has revised the monetary limits for filing of appeals by the Department before the Tribunal with retrospective effect. As per the Circular (supra), the monetary limit of tax effect for filing appeals before the Tribunal by the Department has been raised to Rs.20 lakhs.

The learned Departmental Representative furnished a table giving the details of tax effect involved in each of the appeals mentioned in title and has filed separate letters in respect of each of the appeals, all dated 09.05.2019 with a prayer to withdraw the appeals consequent to CBDT Circular dated 11.07.2018 (supra.). The tax effect in the captioned appeals is undisputedly below the monetary limit of Rs.20 lakhs.

Both sides heard. On perusal of the facts in both the appeals filed by the Department and the chart (supra) depicting the tax effect, we find undisputedly the total tax effect involved in the present appeals is below Rs.20 lakhs. The CBDT circular No.3/2018 dated 11th July, 2018 raised the monetary limit of tax effect for filing of appeal by the Department before the Tribunal to Rs.20 Lakhs. The circular applies to the pending appeals of the Department before the Tribunal too. Thus, in view of the CBDT circular, we are of the opinion that the present appeals of the

5 ITA No. 169/BIL/2016 & Ors. Low Tax Effect

Revenue are liable to be dismissed on account of low tax effect without going into the merits of the case.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal/s with the requisite submissions indicating that the appeals are protected by the exceptions prescribed in para 10 of the Circular (supra).

In the result, all the appeals of the Revenue are dismissed.

Since all the appeals of the Revenue are dismissed as not- maintainable on account of low tax effect, the cross objections filed by the assessee becomes infructuous and hence, are dismissed.

In the combined result, appeals of the Revenue are dismissed and cross objections filed by the assessee are also dismissed.

Order pronounced on 16th day of May, 2019.

Sd/- Sd/- MITHA LAL MEENA PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER रायपुर/ RAIPUR ; ददनाांक / Dated : 16th May, 2019. SB

6 ITA No. 169/BIL/2016 & Ors. Low Tax Effect

आदेश की प्रधतधलधप अग्रेधषत / Copy of the Order forwarded to : 1. अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Concerned CIT(Appeals), Raipur. 4. The Concerned CIT, Raipur. 5. धवभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, रायपुर बेंच, रायपुर / DR, ITAT, Raipur Bench, Raipur. गार्ड फ़ाइल / Guard File. 6.

// True Copy //

आदेशानुसार / BY ORDER,

धनजी सधचव / Private Secretary आयकर अपीलीय अधधकरण, रायपुर / ITAT, Raipur.

D.C.I.T. CENTRAL CRICLE, RAIPUR vs. SHRI MAHESH SHARMA, RAIPUR

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