What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable due to a low tax effect, as per CBDT Circular No. 17/2019. The circular sets a monetary limit for filing appeals before the Tribunal.

The Revenue filed an appeal before the ITAT for assessment year 2011-12. The Revenue's counsel conceded that the appeal had a low tax effect. The assessee's counsel argued for dismissal based on a CBDT circular.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the low tax effect as per the prevailing CBDT circular.

DCIT vs M/S G4S Corporate Services… | ITAT Delhi 2019

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

Before: SHRI H.S. SIDHU & SHRI PRASHANT MAHARISHI

Revenue by : Sh. Avikal Manu, Sr. DR. Assessee by : Ms. Soumya Singh, Adv. O R D E R PER H.S. SIDHU, JM :

The Appellant, by filing the present appeal sought to set aside the impugned order passed by the Ld. Commissioner of Income-tax (Appeals)-16, New Delhi qua the assessment year 2011-12.

2. Perusal of the aforesaid appeal 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 appeal 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/-

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/ judgment involves more than one assessee. each assessee shall be dealt with separately."

In view of the CBDT Circular No.17/2019 dated 8th August, 2019 4.

DCIT, NEW DELHI vs. M/S G4S CORPORATE SERVICES (INDIA) PVT. LTD., NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments