What did the Tribunal hold?

The Tribunal held that the appeals filed by the Revenue were not maintainable due to low tax effect, as per the revised monetary limits issued by the CBDT. The appeals were dismissed on this ground.

The Revenue filed appeals before the ITAT against the orders of the CIT(A) for assessment years 2012-13 and 2013-14. The tax effect in these appeals was below the monetary limit prescribed by the CBDT for filing appeals.

What were the issues?

Whether appeals filed by the Revenue are maintainable when the tax effect is below the prescribed monetary limits set by the CBDT.

ACIT vs Shri Sitaram Kedia | ITAT Kolkata 2021

Income Tax Appellate Tribunal, “SMC” BENCH, KOLKATA

Before: SHRI P.M. JAGTAP

For Appellant: Shri Manoj Kataruka

For Respondent: Shri Jayanta Khanra

आदेश / ORDER

Both these appeals filed by the Revenue are directed against order(s) of Ld. Commissioner of Income-tax (Appeals)-7, Kolkata, dated 17-01-2019 for assessment years 2012-13 and 2013-14.

The ld. DR fairly conceded that the tax effect involved in the present appeals filed by the Revenue is less than the monetary limit prescribed by CBDT.

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 appeal under consideration is less than the revised monetary limit of Rs.50.00 lakh, I am not inclined to entertain such 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. Not only that, it has further been directed to the competent authorities to withdraw all such appeals.

In view of the foregoing discussion, I dismiss both these appeals filed by the Revenue holding the same to be not maintainable on account of low tax effect.

It is however clarified that if subsequently it is found by the concerned AO that the tax effect in the appeals is more than the prescribed monetary limit of Rs.50.00 lakh or the case is covered by any exception, it will be open to the Revenue to move the Tribunal for taking necessary action.

In the result, both the appeals of Revenue are dismissed.

Order pronounced in the open court on 23rd March, 2021.

ACIT CIRCLE-26(1) KOLKATA, KOLKATA vs. SHRI SITARAM KEDIA, KOLKATA

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