What did the Tribunal hold?

The Tribunal dismissed the appeal filed by the Revenue. It relied on CBDT Circular No. 3/2018 and Circular No. 17/2019, which enhanced the monetary limits for filing appeals. The Tribunal noted that the tax effect in the present appeal was below these limits.

The Revenue filed an appeal before the ITAT. The assessee did not appear. The Revenue's counsel submitted that the tax effect was less than Rs. 20 lacs, making the appeal not maintainable as per CBDT circulars.

What were the issues?

Whether an appeal filed by the Revenue is maintainable when the tax effect is below the monetary limits prescribed by the CBDT circulars for filing appeals before the Tribunal.

DCIT vs Hindustan Diamond Pvt. Ltd | ITAT Mumbai 2019

Income Tax Appellate Tribunal, MUMBAI BENCH “H”, MUMBAI

Before: Shri Amarjit Singh & Shri G Manjunatha

For Appellant: Shri Manoj Kumar Singh-(DR)

Per G MANJUNATHA, AM :

This appeal filed by the Revenue is directed against order of the CIT(A)- 22, Mumbai dated 14/03/2018 and it pertains to AY 2014-15. 2. None appeared for the assessee. We have heard the Ld. DR and perused materials available on record. During course of hearing, ld. DR

for the revenue submitted that tax effect involved in this appeal filed by the revenue is less than Rs. 20 lacs and in view of latest CBDT circular

No. 3/2018 dated 11-7-2018, and also modified circular No. 17/2019

dated 08/08/2019, appeal filed by the revenue is not maintainable and needs to be dismissed. The Ld. DR, further argued that, the issue

involved in this appeal is appears to be covered by exception provided

under clause (e) of subsequent circular and therefore, if required the revenue shall be allowed to file miscellaneous application to relcall the order. We, find that, the CBDT, recently had issued a circular no.

3/2018 dated 11-7-2018, superseding its earlier circular no. 21/2015 and enhanced monetary limit for filing appeal before various appellate

authorities and accordingly, enhanced monetary limit to Rs. 20,00,000/-

for filing appeal before the Tribunal. Further, the board has issued one

more circular vide ciruclar no.17/2019 dated 08/08/2019 and enhanced

monetary limit for filing appeal before appellate Tribunal to Rs.

50,00,000/-. Further, in the said circular, the CBDT had instructed its officer’s to file application for withdrawal of appeal already filed or not to pursue pending appeals. We, therefore, by taking into account the CBDT

circular No. 3/2018 dated 11-7-2018 and circular no.17/2019 dated

08/08/2019 and also considering the fact that tax effect involved in the present appeal is less than the amount of monetary limit fixed by the CBDT for not filing appeal, dismissed appeal filed by the revenue as not maintainable. We, further noted that the Co-ordinate bench of ITAT,

Ahmedabad ‘A’ Bench in ITA.No. 1398/Ahd/2004, vide order dated

14/08/2019 has passed detailed order considering new circular issued

by the CBDT and held that except amendment to para 3 of the circular

No.3/2018 dated 11/07/2018, all other portions of the circular

No.03/2018 (supra) have remain intact, therefore, this circular is applicable even for pending appeals and accordingly, rejected the arguments of the revenue that the effect of the circular shall come into force from the date of issue of this circular. Therefore, considering the facts and circumstances of this case and also taken note of circulars

issued by the CBDT including circular No. 17/2019 dated 08/08/2019,

and also by following the decision of Co-ordinate Bench, we dismissed

appeal filed by the revenue as not maintainable. However, we keep

open option to the revenue to file a miscellaneous application, if necessary, in case the issues involved in the present appeal comes

within 3 exceptions as provided in para 10 of said circular and clause (e)

of subsequent circular.

In the result, appeal filed by the Revenue is dismissed.

Order pronounced in the open court on 20th August, 2019

4 ITA 4069/Mum/2018 (Amarjit Singh) ACCOUNTANT MEMBER Mumbai, Dt : 20-08-2019 Thirumalesh, Sr.PS Copy to :

Appellant

Respondent

CIT(A)

CIT

DR // By order

Sr.PS, ITAT, Mumbai

DCIT 14(2)(1), MUMBAI vs. HINDUSTAN DIAMOND PVT. LTD, MUMBAI

What did the Tribunal hold?

What were the facts?

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