DCIT, NEW DELHI vs. SMT. REENA GOEL, NEW DELHI

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ITA 3243/DEL/2017Status: DisposedITAT Delhi21 August 2019AY 2009-107 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, which enhanced the monetary limit for filing appeals to Rs. 50 lakhs before the ITAT, applies retrospectively to pending appeals. Therefore, the Revenue's appeals were dismissed.

What were the facts?

The Revenue filed appeals against the orders of the CIT(A) for assessment years 2009-10 and 2010-11. The tax effect in these appeals was less than Rs. 50 lakhs.

What were the issues?

Applicability of CBDT Circular No. 17/2019 to pending appeals and whether it has retrospective effect.

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 ‘F’ BENCH,

Before: SHRI N.K. BILLAIYA, & SHRI PAVAN KUMAR GADALE

For Appellant: Shri Anup Mehta, CA
Hearing: 21.08.2019Pronounced: 21.08.2019

PER N.K. BILLAIYA, AM:-

1.

The above two appeals by the Revenue are preferred against the two separate orders of the Commissioner of Income Tax [Appeals] - 29, New Delhi each dated 22.02.2017 pertaining to assessment years 2009- 10 and 2010-11.

2. A perusal of the grievances of the revenue in both the appeals shows that the tax effect would be less than Rs. 50 lakhs and hence the appeals have to be dismissed in the light of the CBDT Circular No. 17/2019 dated 08.08.2019.

4. The ld. DR vehemently stated that this Circular in not applicable to the existing appeals as it is prospective in nature.

5.

In our considered opinion, the language of the Circular 17/2019 dated 08.08.2019 clearly shows that it has referred to the earlier Circular 3/2018 and its amendment dated 20.08.2018 vide which monetary limit for filing of Income tax appeals by the department before the ITAT, Hon'ble High Court, SLP/and appeals before the Hon'ble Supreme Court have been specified. It would be pertinent to refer to the Circular No. 17/2019 which reads as under:

“Circular No. 17/2019

New Delhi. 8th August 2019

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 of2018 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.

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 IT matters Monetary Limit (Rs.)

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 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/ 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.

7. Hindi version will follow. “

6.

As mentioned elsewhere by Circular 17/2019, the CBDT has further enhanced the monetary limit for filing of appeals and the same is amendment to Circular 3/2018. We find that Clause 13 of Circular 3/2018 reads as under:

“The Circular will apply to SLPs/appeals/cross objections /references to be filed henceforth in Hon'ble Supreme Court/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.”

7.

In light of the above, we are of the considered opinion that Circular No. 17/2019 shall also apply retrospectively to pending appeals. In that view of the matter, the appeal filed by the Revenue stand dismissed.

8.

In the result, the appeals filed by the Revenue in & 3244/DEL/2017 stand dismissed.

The order is pronounced in the open court on 21.08.2019.

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