ACIT, NEW DELHI vs. MS. VELANI OIL TRADERS, DELHI

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ITA 1126/DEL/2016Status: DisposedITAT Delhi29 August 2019AY 2010-114 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 enhances the monetary limit for filing appeals. Therefore, appeals with a tax effect below Rs. 50 lakhs are not maintainable.

What were the facts?

The Revenue filed appeals against the orders of the CIT(A) for various assessment years. The Assessee's counsel pointed out that CBDT Circular No. 17/2019 mandates that appeals with a tax effect below Rs. 50 lakhs should not be preferred.

What were the issues?

Whether CBDT Circular No. 17/2019, which sets a monetary limit for filing appeals, applies retrospectively to pending appeals before the Tribunal.

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 “D”: NEW DELHI

Before: SHRI PRASHANT MAHARISHI & SHRI K.N.CHARY

For Appellant: Shri Pratap Gupta, FCA
For Respondent: Smt Naina Soin Kapil, Sr. DR, Shri Pratap Gupta, FCA, Smt Naina Soin Kapil, Sr. DR, Smt Naina Soin Kapil, Sr. DR, Shri K. Sampath, Adv, Shri V. Rajakumar, Adv, Smt Naina Soin Kapil, Sr. DR, Shri K. C. Singhal, Adv, Shri Amit Gupta, Adv
Hearing: 28/08/2019Pronounced: 29/08/2019

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

1.

These are the appeals filed by Department against the order of respective the ld CIT(A) for respective assessment Years.

2.

At the outset of the hearing itself, the ld. ARs 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.

3.

The ld DRs 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.

5. The same may be brought to the notice of all concerned.

6.

This issues under section 268A of the Income-tax Act, 1961.”

5.

We find that the tax effect involves in the appeal of the Revenue is below Rs. 50 lakhs. There is no dispute that the Board’s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present appeal in view of the aforesaid instruction since the tax effect in the instant appeal is less than the amount of Rs. 50 lakhs. The issue of applicability of the above circular to pending appeals has been

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