ITO, SAHARANPUR vs. M/S. SHIVJI PALACE HOTEL & CLUB PVT. LTD., SAHARANPUR

(A) Both appeals by Revenue are filed against the order of Learned Commissioner of Income Tax (Appeals)-, Muzaffarnagar [“Ld. CIT(A)”, for short], dated 27.02.2017 for Assessment Year 2000-01 & 2001-02 respectively. Grounds taken in this appeal of Revenue are as under:

“1. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on the facts in quashing the assessment order as invalid ignoring the fact that vide letter dated 25.02.2014, the A.O. issued copy or ITA No.- 2878,2879/Del/2017 Shivji Palace Hotel & Club Pvt. Ltd. reasons recorded for issuing notice u/s 148 of I.T.Act and the assessee never challenged before the AO during assessment proceedings that it had not received the copy of reasons recorded. 2. That order of A.O. be restored and that of CIT(A) be quashed.”

(B) At the outset, Ld. Counsel for the assessee brought to our notice at the time of hearing that tax effect in each of these appeals is below Rs. 50,00,000/-. Vide recent CBDT Circular No. 17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum threshold limit of tax effect for filing of appeals by Revenue in Income Tax Appellate Tribunal (“ITAT”, for short) has been enhanced to Rs. 50,00,000/-. In a subsequent clarification issued by CBDT vide F.No. 279/Misc/M- 93/2018-ITJ, dated 20/08/2019, it has been clarified by CBDT that the aforesaid revised monetary limit is also applicable to all pending appeals in ITAT. In view of the foregoing, the learned Counsel for the assessee contended that these appeals are not maintainable. Having regard to the aforesaid, the Senior Departmental Representative (“Sr. DR”, for short) for Revenue did not press these appeals. Therefore, both appeals are dismissed being not pressed and also being not maintainable having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with aforesaid CBDT Circular No. 3 of 2018 in the light of aforesaid clarification dated 20/08/2019.

(C) Before leaving, we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking recall of this order and, for restoration of this appeal if it is found that appeal

ITA No.- 2878,2879/Del/2017 Shivji Palace Hotel & Club Pvt. Ltd. of Revenue is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.

(D) In the result, both appeals by Revenue are dismissed. Our decision was orally pronounced in the Open Court after conclusion of hearing on the date of hearing. Now, this written order is pronounced in Open Court on 24/02/20.