What did the Tribunal hold?

The Tribunal held that as the tax effect was below the revised monetary limit set by the CBDT circular, the appeal was not maintainable. Therefore, the appeal filed by the Revenue was dismissed.

The Revenue filed an appeal before the ITAT. The tax effect of the appeal was Rs.46,95,950/-, which was less than the revised monetary limit of Rs.50.00 lakh for filing appeals by the Department.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable given the tax effect was below the revised monetary limits prescribed by CBDT circulars.

DCIT vs Mahaveer Civil Engineering and… | ITAT Pune 2022

Income Tax Appellate Tribunal, “A” BENCH,

Before: SHRI S.S.GODARA & SHRI DIPAK P.RIPOTE

For Appellant: Shri Hari Krishn – AR

For Respondent: Shri S P Walimbe – DR

Hearing: 06/06/2022Pronounced: 09/06/2022

ORDER

PER DIPAK P.RIPOTE, AM:

This appeal by the Revenue is directed against the order of Learned Commissioner of Income Tax(Appeals)-12 [ld.CIT(A)], Pune dated 25.10.2019 for the assessment year 2011-12.

At the outset, the ld. AR submitted that the tax effect in the instant appeal is less than Rs.50.00 lakh, which the ld. DR conceded. Tax Effect as per Form 36 column 10 is Rs.46,95,950/-.

The CBDT has issued circular No.17/2019 dated 08-08-2019 revising upward the monetary limits for filing of appeals by the Department in Income-tax Cases before various appellate forums. The earlier circular No.03/2018 dated 11-07-2018 fixed monetary limit for filing of appeals by the Revenue before the Tribunal at Rs.20.00 lakh. Such limit has now been enhanced in the Circular dated 08-08-2019 to Rs.50.00 lakh. Since tax effect in the instant appeal is less than the revised monetary limit of Rs.50.00 lakh, we are not inclined to entertain this appeal.

At this juncture, it is pertinent to note that the CBDT vide F.No.279/Misc/M-13/2018-ITJ dated 20-08-2019 has clarified that the revised monetary limits so mentioned in Circular No.17/2019 are applicable to all pending appeals. In view of the foregoing discussion, we dismiss the appeal filed by the Revenue. However, it is made clear that if the tax effect in this appeal is found by the AO to be more than the prescribed monetary limit of Rs.50.00 lakh or the case(s) is found to be covered by an exception, it will be open to the Revenue to move the Tribunal for recalling the order.

DCIT CIRCLE-1, JALGAON vs. MAHAVEER CIVIL ENGINEERING AND SERVICES PRIVATE LIMITED, JALGAON

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