What did the Tribunal hold?

The Tribunal held that the appeals filed by the Revenue were not maintainable due to low tax effect, as per CBDT Circular No. 17/2019. The appeals were dismissed on this ground.

The Revenue filed appeals against the orders of the CIT(A) for assessment years 2012-13 and 2013-14. Both parties agreed that the tax effect involved in these appeals was below the prescribed limit.

What were the issues?

The primary issue was whether the Revenue's appeals were maintainable before the Tribunal given the low tax effect, in light of the CBDT's monetary limits for filing appeals.

DCIT vs Miele India Pvt. Ltd., New Delhi | ITAT Delhi 2019

Income Tax Appellate Tribunal, DELHI BENCH ‘FRIDAY’’ : NEW DELHI

Before: SHRI H.S. SIDHU & SHRI O.P. KANT

DCIT, CIRCLE 16(2), vs. MIELE INDIA PVT. LTD. 1ST FLOOR, COPIA NEW DELHI CORPORATION SUIT PLOT NO. 9, JASOLA, NEW DELHI – 25 (PAN: AAFCM3435R) (RESPONDENT) (APPELLANT) Revenue by : Ms. Ashima Neb, Sr. DR Assessee by : Sh. Piyush Kaushik, Adv. O R D E R PER H.S. SIDHU, JM :

In this cases, Applications for Early hearing in the main Appeals have been filed. However, at the time of hearing, both the parties agreed that the tax effect involved in these appeals is below the prescribed limit. Therefore, the main appeals may be decided today itself. Accordingly, the Application for early hearing has become infructuous and dismissed as such.

2. The Appellant, by filing the present appeals sought to set aside the impugned orders passed by the Commissioner of Income- tax (Appeals)-22, New Delhi qua the assessment years 2012-13 & 2013-14.

3. Perusal of the aforesaid appeals filed by the Revenue apparently show that the same is having low tax effect as per CBDT Circular No.17/2019 dated 8th August, 2019 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.50,00,000/- and this factual position has been fairly conceded by the Ld. D.R. The Ld. A.R. contended that the appeals of the Revenue may be dismissed in the light of CBDT Circular (supra).

We have heard the parties on the issue in controversy and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised and the relevant portion of the aforesaid circular is extracted as under: “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 of 2018 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 Income-tax Monetary matters Limit (in Rs) 1 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/ judgment involves more than one assessee. each assessee shall be dealt with separately."

DCIT, CIRCLE- 16(2), NEW DELHI vs. MIELE INDIA PVT. LTD., NEW DELHI

What did the Tribunal hold?

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