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Income Tax Appellate Tribunal, DELHI ‘A’ BENCH,
Before: SHRI H.S. SIDHU, & SHRI N.K. BILLAIYA
PER N.K. BILLAIYA, ACCOUNTANT MEMBER, ITA No. 5719/DEL/2012 [A.Y 2008-09] [A.Y 2009-10]
These two appeals by the Revenue are preferred against the common order of the Commissioner of Income Tax [Appeals] - Noida dated 13.08.2012 pertaining to assessment years 2008-09 and 2009-10.
2. A perusal of the grievance of the revenue shows that the tax effect would be less than Rs. 50 lakhs and hence the appeals have to be dismissed in the light of the CBDT Circular No. 17/2019 dated 08.08.2019.
3. The ld. DR vehemently stated that this Circular in not applicable to the existing appeals as it is prospective in nature.
In our considered opinion, the language of the Circular 17/2019 dated 08.08.2019 clearly shows that it has referred to the earlier Circular 3/2018 and its amendment dated 20.08.2018 vide which monetary limit for filing of Income tax appeals by the department before the ITAT, Hon'ble High Court, SLP/and appeals before the Hon'ble Supreme Court have been specified. It would be pertinent to refer to the Circular No. 17/2019 which reads as under:
“Circular No. 17/2019
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 of2018 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 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.
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 IT matters Monetary Limit (Rs.)
Before Appellate Tribunal 50,00,000/- 2. Before High Court 1,00.00.000/- 3. Before Supreme Court 2.00.00,000/-
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, in 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 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.
7. Hindi version will follow. “
As mentioned elsewhere by Circular 17/2019, the CBDT has further enhanced the monetary limit for filing of appeals and the same is amendment to Circular 3/2018. We find that Clause 13 of Circular 3/2018 reads as under:
“The Circular will apply to SLPs/appeals/cross objections /references to be filed henceforth in Hon'ble Supreme Court/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.”
In light of the above, we are of the considered opinion that Circular No. 17/2019 shall also apply retrospectively to pending appeals. In that view of the matter, the appeal filed by the Revenue stands dismissed.
As a result, both the appeals of the Revenue stand dismissed.
CO No. 482/DEL/2012 CO No. 483/DEL/2012
Both these cross objections are dismissed as withdrawn. [A.Y 2008-09] [A.Y 2009-10]
The common grievance of the assessee is that the ld. CIT(A) erred in confirming the levy of interest u/s 201(1A) of the Act.
At the very outset, the ld. counsel for the assessee drew our attention to the chart of deduction and deposition of TDS u/s 192 of the Act which is as under:
It is the say of the ld. counsel for the assessee that as per provisions of section 192(3) of the Act, adjustment for any excess deduction or deficiency arising out of any previous deduction or failure to deduct during the same F.Y. has been allowed. The ld. counsel for the assessee pointed out that in F.Y. 2007-08, in the months of September to December, there was excess deduction and similarly in F.Y. 2008-09, in the months of July to December, there was excess deduction of tax. The ld. counsel for the assessee stated that if the provisions of section 192(3) are complied with, no interest is leviable.
The ld. DR supported the findings of the Assessing Officer.
We have given thoughtful consideration to the tax deduction and deposition, as exhibited elsewhere, which is part of the assessment order. We find force in the contention of the ld. counsel for the assessee. Provisions of section 192(3) of the Act clearly allow the adjustment of excess deduction in the same previous years. Since there are excess deductions in some months, we deem it fit to restore the issues to the file of the Assessing Officer. The Assessing Officer is directed to examine the chart which is also exhibited in his assessment order itself and decide the issue in light of provisions of section 192(3) of the Act.
Both these appeals are treated as allowed for statistical purposes.
To sum up, in the result, - Dismissed ITA No. 5720/DEL/2012 - Dismissed CO No. 482/DEL/2012 - Withdrawn CO No. 483/DEL/2012 - Withdrawn ITA No. 5789/DEL/2012 - Allowed for statistical purposes Allowed for statistical purposes
The order is pronounced in the open court on 25.02.2020.