What did the Tribunal hold?

The Tribunal held that as per CBDT Circular No. 17/2019, appeals with a tax effect below the revised monetary limit of Rs. 50,00,000 should be dismissed. Therefore, the Revenue's appeal was dismissed.

The Revenue filed an appeal against an order of the CIT(A) for AY 2009-10. The tax effect of the relief granted by the CIT(A) was less than Rs. 50.00 lacs.

What were the issues?

Whether the Revenue's appeal should be dismissed due to the tax effect being below the monetary limit prescribed by CBDT circulars for filing appeals.

DCIT vs Midas Footwears P.Ltd | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “H”, BENCH MUMBAI

Before: SHRI R.C.SHARMA, AM & SHRI PAWAN SINGH, JM

For Respondent: Shri Manoj Kumar Singh

Hearing: 28/08/2019Pronounced: 18/09/2019

आदेश / O R D E R PER R.C.SHARMA (A.M):

This is an appeal filed by the Revenue against the order of CIT(A)- 17, Mumbai dated 10/05/2013 for A.Y.2009-10 in the matter of order passed u/s.143(3) of the Income Tax Act, 1961.

As per grounds of appeal, tax effect in respect of relief granted by the ld. CIT(A) works out to be less than Rs. 50.00 lacs, therefore, in view of the CBDT circular No. 17/2019 dated 08/08/2019 this appeal deserves to be dismissed.

M/s. Midas Footwears Pvt. Ltd.,

CBDT Circular No. 17 of 2019 dated 08.08.2019 reads 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 Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts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-tax Monetary Limit Monetary Limit 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.  In case where a composite order/ judgment involves more than one assessee, each assessee shall be dealt with separately.”

Since the tax effect is less than Rs. 50.00 lacs, the appeal of the revenue deserves to be dismissed. Before parting with the matter, it is made clear that the department is at liberty to file Misc. application, if the M/s. Midas Footwears Pvt. Ltd., tax effect is found to be more than Rs. 50.00 lacs or the case falls in any of the exceptions of the circular.

In the result, appeal of the revenue is dismissed.

DCIT OSD 8(1), MUMBAI vs. MIDAS FOOTWEARS P.LTD, MUMBAI

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