ITO (TDS) - 1 (2)(2), MUMBAI vs. EXPERTEASE (INDIA) PVT. LTD., MUMBAI

ORDER PER BENCH The captioned appeals filed by the Revenue are directed against the order of the Commissioner of Income Tax (Appeals)-59, Mumbai [in short ‘CIT(A)’] and arise out of order passed u/s 201(1) & 202(1A) of the Income Tax Act 1961, (the ‘Act’). Though the case was fixed for hearing on 13.11.2019, 16.12.2019, 16.01.2020, 20.02.2020, 14.09.2020 & 11.11.2020, neither the assessee nor its authorized representative appeared before the & 6736/Mum/2018 2 M/s Expertease (India) P. Ltd.

Tribunal on the above dates. As there is non-compliance by the assessee, we are proceeding to dispose off these appeals, after examining the documents available on record and after hearing the Ld. Departmental Representative (DR).

CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purchase, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.

At para 13 of the said Circular, it has been mentioned that:

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“13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.”

Similarly, the total tax effect as per Form No. 36 filed by the Revenue on 29.11.2018 for the AY 2009-10 is Rs.40,05,540/- [Rs.31,41,600/- under the 1st, 2nd & 5th ground of appeal ; Rs.8,63,940/- under the 3rd and 5th ground of appeal].

5. Before us, the Ld. Departmental Representative (DR) fairly agrees that the tax effect herein is below the monetary limit of Rs.50,00,000/- fixed by the above Circular for filing of appeals before the ITAT. However, it is pleaded by him that in case of exceptions to the above Circular, the appellant may be allowed to bring it to the notice of the Tribunal. Considering the submission, we make it clear that the appellant shall be at liberty to point out the exceptions to which the above Circular may not apply by filing miscellaneous applications. & 6736/Mum/2018 4 M/s Expertease (India) P. Ltd.

Order pronounced in the open Court on 12/11/2020.