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Income Tax Appellate Tribunal, MUMBAI BENCH “J” MUMBAI
Before: SHRI VIKAS AWASTHY & SHRI N.K. PRADHAN
ORDER PER N.K. PRADHAN, A.M.
The captioned appeals filed by the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-57, Mumbai (in short ‘CIT(A)’) and arise out of the assessment order passed u/s 143(3) r.w.s. 144C(3) of the Income Tax Act 1961, (the ‘Act’).
Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for M/s Reliance Nippon Life Asset Management Ltd 2 & 617/Mum/2018 further enhancement of monetary limit for filing of appeals by the Revenue before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation.
CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purchase, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.
At para 13 of the said Circular, it has been mentioned that:
“13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.”
As a step towards further management of litigation, CBDT vide Circular No. 17/2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-.
M/s Reliance Nippon Life Asset Management Ltd 3 & 617/Mum/2018 5. In the instant appeal filed, the tax effect on the amount in dispute is Rs.37,34,948/- (AY 2012-13) and Rs.31,41,912/- (AY 2013-14). Therefore, the Ld. counsel for the assessee submits that the appeal filed by the Revenue be dismissed.
Before us, the Ld. Departmental Representative (DR) fairly agrees that the tax effect herein is below the monetary limit of Rs.50,00,000/- fixed by the above Circular for filing of appeals before the ITAT. However, it is pleaded by him that in case of exceptions to the above Circular, the appellant may be allowed to bring it to the notice of the Tribunal. Considering the submission, we make it clear that the appellant shall be at liberty to point out the exceptions to which the above Circular may not apply by filing miscellaneous applications.
In view of the CBDT Circular No. 17/2019, these appeals involving tax effect of less than Rs.50,00,000/- are dismissed.