ITO, NEW DELHI vs. SH. MANI RAM, DELHI

The Revenue moved Miscellaneous Application under Section 254(2) of the Income-tax Act, 1961, seeking recall of the order dated 21.08.2018 passed by the Bench in CBDT Circular No.3/2018, dated 11.07.2018, is hereby recalled and the appeal is heard today, i.e., 27.09.2019 for disposal. Accordingly, Miscellaneous Application is allowed.

The appellant, ITO, Ward-40(4), Delhi (hereinafter referred to as ‘the Revenue’) by filling the present appeal sought to set aside the impugned order dated 19.10.2016 passed by Commissioner of Income Tax (Appeals)-14, New Delhi, qua the assessment year 2012-13.

At the outset, the learned Sr. DR 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. 4. We find that the CBDT vide Circular No. 17/2019 dated 08.08.2019, has enhanced the monetary limit for filing of appeals by the Department before the Income Tax Appellate Tribunal from Rs.20 lakhs to Rs.50 lakhs. The said circular also makes reference to the earlier Circular No. 3/2018, dated 11.7.2018 and, especially states that as a step towards further management of litigation, the Board has decided to enhance the monetary limit for filing of the appeals. This circular is not in supersession of the earlier circular but only amends the monetary limits as well as gives clarification with regard to Paragraph 5 of the earlier circular. This, inter alia, means that all the other conditions mentioned in the earlier Circular No. 3 of 2018 dated 11.7.2018 will apply mutatis mutandis including that, it will apply to all the pending appeals. For the sake of ready reference, relevant portion of the latest circular, i.e., Circular No. 17/2019, dated 08.08.2019, is reproduced as under: