ITO (EXEMPTIONS), GHAZIABAD vs. M/S. SHRI RAM FOUNDATION CHARITABLE TRUST, MEERUT

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ITA 6309/DEL/2016Status: DisposedITAT Delhi26 September 2019AY 2008-095 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 that appeals with a tax effect below Rs. 50 lakhs are not maintainable. The Revenue was granted liberty to file a miscellaneous application if specific instances warranting exceptions come to light.

What were the facts?

The Revenue filed appeals before the ITAT. The Assessees pointed out that CBDT Circular No. 17/2019 mandates that appeals with a tax effect below Rs. 50 lakhs should not be filed or pursued.

What were the issues?

Whether CBDT Circular No. 17/2019, enhancing monetary limits for appeals, applies to pending appeals before the ITAT. Whether appeals with a tax effect below the enhanced limit are maintainable.

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 “G”: NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI

For Appellant: Shri Rajat Jain, CA
For Respondent: Shri N. K. Bansal, Sr. DR, Shri Rajat Jain, CA
Pronounced: 26/09/2019

O R D E R PER BENCH 1. These are the appeals filed by Department against the order of respective ld CIT(A)’s 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 Before High Court 2. 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 Page | 3

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