ITO WD 18(2)(3), MUMBAI vs. MANILAL K THAKUR, MUMBAI

This appeal of Revenue is arising out of the order of the Commissioner of Income Tax (Appeals)]-29, Mumbai, [in short CIT(A)], in ITA No. CIT(A)-29/IT-56/ITO.18(2)(3)/14-15 dated 04.09.2015. The Assessment was framed by the Income Tax Officer, Ward-15(3)(4),

At the outset, it is noticed that the AO made addition of income on account of undisclosed sources amounting to ₹ 70,01,618/-. Aggrieved, assessee preferred the appeal before CIT(A), who deleted the same as unjustifiable. Now, aggrieved Revenue is in appeal before Tribunal. The learned Counsel for the assessee stated that the tax effect in this appeal, which is below the low tax effect as prescribed vide CBDT Circular No. 17/2019 vide F.No. 279/Misc.142/2007-ITJ(Pt.) dated 08.08.2019, wherein the monetary limit for filing of appeal before ITAT is enhanced to ₹ 50 lacs. We noted that vide this circular No. 17/2019 dated 08.08.2019 a amendment was made to CBDT Circular No. 3/2018 dated 11.07.2018 vide F.No. 279/Misc. 142/2007-ITJ (Pt) increasing the monetary limit for filing of appeal before Income Tax Appellate Tribunal i.e. ₹ 50 lacs in each of the case from the monetary limit of ₹ 20 lacs. We noted that earlier Circular No. 3 of 2018 was made applicable to pending appeals also and this clause of the circular remains unchanged even after the amendment. Admittedly, in this case tax effect is below prescribed limit for filing of appeal before the Tribunal by the Revenue i.e. ₹ 50 lacs.

When this was confronted to the learned Sr. Departmental Representative, he could not point out that this appeal falls under any of the exception as provided in Circular No. 3 of 2018, which are applicable to the present circular no. 17/2019. Now, before us, the learned CIT Departmental Representative only requested that he want to verify whether this appeal falls under any of the exception as provided in CBDT Circular No. 3/2018. Here, we are giving liberty to Revenue, that in case,