I.T.O.,WARD-9(3), KOLKATA vs. M/S PIONEER KHADAN PRODUCT PVT. LTD., KOLKATA

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ITA 2663/KOL/2019Status: DisposedITAT Kolkata21 September 2022AY 2012-133 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CBDT circular regarding monetary limits for appeals applies retrospectively to pending appeals. Since the tax effect was below the prescribed limit, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The tax effect on the disputed additions was less than Rs. 50 lacs, the enhanced monetary limit for filing appeals before the Tribunal as per CBDT Circular No. 17/2019.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the low tax effect in light of the CBDT's revised monetary limits for appeals.

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “C”BENCH KOLKATA

Before: Shri Sanjay Garg & Shri Girish Agrawal

order : September 21, 2022 आदेश / ORDER संजय गग�, �या�यक सद�य �वारा / Per Sanjay Garg, Judicial Member: The present appeal filed by the Revenue is directed against the order dated 13.08.2019 of the Commissioner of Income Tax (Appeals)-5, Kolkata [hereinafter referred to as the ‘CIT(A)]. 2 It is seen, at the outset, that the tax effect on the disputed additions before us is less than Rs.50 lacs as the prescribed in the CBDT’s latest Circular No.17/2019 dated 08.08.2019. It will be pertinent to reproduce the relevant portion of the said Circular as follows:- “2 . As a step toward 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 Assessment Year: 2012-13 M/s Pioneer Khadan Product Pvt. Ltd.

2.

Before High Court 1,00,00,000 3. Before Supreme Court 2,00,00,000 2.1 We find that intention behind the Circular No.17/2019 dated 08.08.2019 needs to be understood in the following perspective:-

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- à-vis where composite order for more than one assessment year 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, 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 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 assessments 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/judgment involves more than one assessee, each assessee shall be dealt with separately.” 2.2. On perusal of the Circular No.17/2019 dated 08.08.2019 and the materials available on record, it reveals that this circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals as well. Hon’ble apex court in Commissioner of Customs vs. Indian Oil Corporation Ltd reported in 267 ITR 272 (SC) has settled the law that CBDT’s circulars are very much binding on revenue authorities.

1.

3. The ld. DR has also fairly stated that tax effect involved in appeal is less than the prescribed limit.

Assessment Year: 2012-13 M/s Pioneer Khadan Product Pvt. Ltd.

4.

In view of above stated position, the appeal of the Revenue is dismissed because of low tax effect than the prescribed limits as per CBDT Circular No.17/2019 (supra). Kolkata, the 21st September, 2022.

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