ITO, REWARI vs. SH. PARTAP SINGH, HARYANA

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ITA 2251/DEL/2015Status: DisposedITAT Delhi16 October 2019AY 2011-124 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that CBDT Circular No. 17/2019 applies to pending appeals and that the revenue's appeal is not maintainable due to the tax effect being less than Rs. 50 lakhs. Consequently, the assessee's cross-objection was also dismissed.

What were the facts?

The revenue filed an appeal before the ITAT, and the assessee filed a cross-objection. The assessee's counsel pointed out a CBDT circular enhancing the monetary limit for appeals to Rs. 50 lakhs, arguing the revenue's appeal should be dismissed as the tax effect was below this limit.

What were the issues?

Whether CBDT Circular No. 17/2019, which enhances the monetary limit for filing appeals, applies to pending appeals before the ITAT.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “ B”: NEW DELHI

Before: SHRI SUDHANSHU SRIVASTAVA & SHRI PRASHANT MAHARISHI

For Appellant: Shri H. R. Verma, Adv
For Respondent: Ms. Nidhi Srivastava, CIT DR, Shri H. R. Verma, Adv
Hearing: 16/10/2019Pronounced: 16/10/2019

Heard together (2 matters)

CO No. 32/Del/2019
ITA No. 2251/Del/2015

Read from the judgment's own cause title. This page is filed under one of them.

O R D E R PER PRASHANT MAHARISHI, A. M.

1.

This appeal is filed by the revenue and the cross objection filed by the assessee against the order of the ld CIT(A), Rohtak dated 09.02.2015 for the Assessment Year 2011-12.

2.

At the outset of the hearing itself, the ld. AR brought to our attention that CBDT vide Circular No. 17/2019 dated 08th August 2019 has decided that the revenue would not prefer any appeal before the Tribunal if the tax effect is less than Rs. 50 lakhs. Therefore, he pleaded that the appeal of the revenue be decided as per the Instruction of the CBDT.

ITO Vs Pratap Singh, CO No. 32/Del/2019 Assessment Year: 2011-12 3. The ld DR vehemently objected to the same and submitted that it applies prospectively and not to pending appeals.

4.

We have heard the contention of rival parties and perused the material on record. We find that the CBDT vide Circular No. 17/2019 dated 08th August 2019 has enhanced the monetary limit for filing the appeal by the department before Income Tax Appellate Tribunal, Hon’ble High Courts and Hon’ble Supreme Court. The relevant para of the aforesaid circular is reproduced as under :- “2. 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 Income-tax Monetary Limit (Rs.) matters 1. Before Appellate Tribunal 50.00,000 2. Before High Court 1.00.00.000 3. Before Supreme Court 2.00,00.000 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-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 y ears 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. Page | 2

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