D.C.I.T.,CIRCLE-1, SILIGURI vs. AJAY KUMAR AGARWAL, SILIGURI

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ITA 84/KOL/2020Status: DisposedITAT Kolkata06 November 2020AY 2012-132 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 the appeal filed by the Department was contrary to the policy decision of the Department as laid down in the CBDT Circular. Therefore, the appeal was dismissed in limine.

What were the facts?

The Revenue filed an appeal before the ITAT with a tax effect of Rs. 2,92,998/-. This amount was below the revised monetary limit of Rs. 50,00,000/- for filing appeals before the Tribunal as per CBDT Circular No. 17/2019.

What were the issues?

Whether an appeal filed by the Revenue is maintainable before the ITAT when the tax effect is below the prescribed monetary limit as per CBDT circular.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH: KOLKATA

Before: Shri J. Sudhakar Reddy, AM & Shri A. T. Varkey, JM]

Pronounced: 06.11.2020

ORDER

Per Shri A.T. Varkey, JM:

1.

1. This is an appeal preferred by the assessee against the order of Ld.CIT(A)- Siliguri, dated 04/11/2019 for A.Y. 2012-13.

2.

None appeared for the assessee. On perusal of Form no. 36 reveals that total tax effect in this case is to the tune of Rs. 2,92,998/-. Therefore, it comes in the ambit of tax effect of CBDT Circular vide Circular No. 17/2019 dated 08.08.2019.

3.

It is noted that the CBDT has issued Circular No. 17/2019 dated 08.08.2019, whereby the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as a measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:

1.

Before Appellate Tribunal Rs. 50,00,000/- 2. Before High Court Rs.1,00,00,000/- 3. Before Supreme Court Rs. 2,00,00,000/- 1 | P a g e Ajay Kumar Agarwal A.Y. 2012-13 4. In the present case, the tax effect by the revenue is less than Rs.50,00,000/- and we note that this appeal had been filed by the revenue on 21.01.2020 and since the tax effect is within the monetary limit for filing appeals before Tribunal, in view of the Circular of CBDT (supra) at the first place Revenue should not have preferred this appeal. In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department in is dismissed in limine.

5.

As a matter of caution, we observe that if the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.50 lakhs or despite low tax effect, the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order.

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