ACIT-8(1)(1), MUMBAI vs. REDIFF.COM INDIA LTD., MUMBAI

The above titled cross appeals one by the assessee and the other by the Revenue have been preferred against the order dated 27.08.2018 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2014-15.

At the outset, it is brought to the notice of the Bench by the Ld A.R. that the CBDT recently has amended the CBDT Circular No. 3/2018 dated 11.07.2018 vide Circular No. 17/2019, F.No. 279/Misc.142/2007-ITJ(Pt.) dated 08.08.2019 increasing the limit for filing of appeal before Income Tax Appellate Tribunal i.e. ₹ 50 lacs in each of the case. We noted that earlier Circular No. 3 of 2018 was made applicable to pending appeals also and this clause of the circular remains unchanged even after the amendment. Admittedly, in this case tax effect is below the prescribed limit for filing the appeal before the Tribunal by the Revenue i.e. ₹ 50 lacs.

When this was confronted to the learned Departmental Representative, he could not point out that this appeal falls under any of the exception as provided in Circular No. 17 of 2019. Admittedly, the tax effect in this appeal of Revenue is much below the prescribed limit of ₹ 50 lacs as per CBDT circular No. 17 of 2019. In view of the above, this appeal of Revenue is dismissed as withdrawn in view of Circular No. 17 of 2019.

Now, before us, the learned CIT Departmental Representative only requested that he wants to verify whether this appeal falls under any of the explanation provided in CBDT Circular No. 3/2018. Here, we are giving liberty to Revenue that in case, after passing of the order it comes to the notice of the Revenue that this appeal does not fall under any explanation of the CBDT by 3/18, the AO can move for recalling of the order within the prescribed time limit under section 254 of the Act.

In the result, the appeal of the Revenue is dismissed.

At the outset, the Ld. Counsel of the assessee brought to the notice of the Bench that the assessee has gone into Vivad Se Vishwas Scheme and also submitted that form No.3 also has already been issued. The Ld. A.R., therefore, prayed before the Bench that appeal may kindly be allowed to be withdrawn.

The Ld. D.R. fairly conceded to the withdrawal of the appeal.

Accordingly, we are inclined to dismiss the appeal of the assessee.

Accordingly, the appeal of the assessee is dismissed as withdrawn.

In the result, both the appeals of the assessee as well as of the Revenue are dismissed.