What did the Tribunal hold?

The Tribunal held that the appeals filed by the Revenue were not maintainable as the tax effect did not exceed the revised monetary limit for filing appeals before the ITAT as per CBDT Circular No. 17 of 2019.

The Revenue filed appeals against the orders of the CIT(A) for Assessment Years 2009-10 and 2010-11. The tax effect in these appeals was less than Rs. 50,00,000/-.

What were the issues?

The primary issue was whether the appeals filed by the Revenue were maintainable given the tax effect was below the prescribed monetary limit for appeals to the ITAT.

DCIT vs Hsbc Bank Oman S.A.O.G. | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “K”, BENCH

Before: SHRI R.C.SHARMA, AM & SHRI VIKAS AWASTHY, JM

For Appellant: Shri Niraj Sheth & Shri Tejashree

For Respondent: Shri Anand Mohan (CIT-DR), Shri Niraj Sheth & Shri Tejashree

Hearing: 10/12/2019Pronounced: 18/12/2019

Revenue by Shri Anand Mohan (CIT-DR) Assessee by Shri Niraj Sheth & Shri Tejashree Shringarpur (ARs) Date of Hearing 10/12/2019 Date of Pronouncement 18/12/2019 आदेश / O R D E R PER: R.C. SHARMA, A.M. These are the appeals filed by the revenue against the separate orders of the ld. CIT(A)-56, Mumbai dated 26/02/2016 for the A.Y. 2009- 10 and 2010-11 respectively in the matter of order passed U/s 143(3) r.w.s. 94CA of the Income Tax Act, 1961 (in short, the Act).

At the outset, the ld DR has fairly agreed that the tax effect in these appeals filed by the revenue are less than Rs. 50.00 lacs.

We have considered the rival contentions and carefully gone through the orders of the authorities below and found that the tax effect CBDT vide Circular dated 08.08.2019 for the purpose of filing of appeal by the department before the Income Tax Appellate Tribunal from Rs. 20,00,000/- to Rs. 50,00,000/-. For ready reference, we reproduce the CBDT Circular No. 17 of 2019 dated 08.08.2019 as under:-

Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation.

Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation.

Appeals/SLPs in Income- Monetary Limit Monetary Limit tax matters (Rs.) (previous (Rs.) limit) (Revised Limit) Before Appellate Tribunal 20,00,000 50,00,000 Before High Court 50,00,000 1,00,00,000 Before Supreme Court 1,00,00,000 2,00,00,000 • 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. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. • Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit.

It is also relevant to mention here that these appeals are not covered by any of the exceptions mentioned in the said circular.

Accordingly, the appeals of the department are not maintainable being monetary limit is less than/not exceeding Rs. 50,00,000/-.

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

Order pronounced in the open court on 18th December, 2019.

DCIT (IT) 2(2)(2), MUMBAI vs. HSBC BANK OMAN S.A.O.G., MUMBAI

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