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Income Tax Appellate Tribunal, DELHI BENCHES “I-2”, NEW DELHI
Before: SHRI R.K.PANDA, AM & SMT. BEENA A PILLAI, JM
Revenue by: Sh. H.K.Chaudhary, CIT, D.R. Date of Hearing : 23.08.2018 Date of pronouncement: 24/08/2018 ORDER PER BENCH: These appeals by Department are against different assessee’s and Cross objections/Appeals by some assessee’s are heard together. These appeals have been filed against orders passed by respective Ld.CIT(A), in relation to different assessment years.
Ld. CIT.DR appeared on behalf of Revenue. In some appeals, assessees hasrecorded appearance through their representatives, while in others, assessees remained unrepresented.
We have heard the parties. It is found that pursuant to mandate of section 268A, CBDT has issued Circular No. 03 of 2018, dated 11th July, 2018 with retrospective effect, revising monetary limit to Rs.20,00,000/- for not filing appeals before the Tribunal. Since tax effect involved in instant appeals is less than Rs.20,00,000/-, therefore they are not maintainable. The Ld.CIT.D.R., although supported orders of Ld.AO, could not controvert the fact that tax effect involved in these appeals is less than Rs.20,00,000/-.
On Going through above referred CBDT Circular, it is clear that it is applicable to all pending appeals with retrospective effect, and there is a clear-cut direction to the Department to either withdraw, or not press such appeals filed before the Tribunal, wherein tax effect is less than Rs.20,00,000/-. We are, therefore, of the view that all the above appeals are not maintainable, as tax effect in these appeals are admittedly less than Rs. 20,00,000/-.
The Ld.CIT.DR brought to our notice letter dated 20.08.2018 by Director (ITJ), CBDT, New Delhi addressed to All Principal CCITs in respect of para no. 10 of Circular dated 11.7.2018, enumerating certain exceptional instances where appeals filed by revenue should be contested, notwithstanding low tax effect. For the sake of convenience the same is reproduced as under: “10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entitled is less than the monetary limits specified in paragraph 3 above or there is no tax effect: (a) where the constitutional validity of the provisions of an Act or Rule is under challenge, or (b) where Board’s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) where revenue audit objection in the case has been accepted by the Department, or