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Income Tax Appellate Tribunal, ‘ C’ BENCH : CHENNAI
Before: SHRI GEORGE MATHAN & SHRI S.JAYARAMAN
आदेश / O R D E R
PER BENCH:
All these three appeals filed by the Revenue for assessment years 2007-08, 2008-09 & 2013-14 and the appeal filed by the Assessee for assessment year 2013-14 are against the common order of ld.CIT(A)-11, Chennai in 746/13-14, 29,30/16-17, 96/14-15, 171/15-16, 261/16-16 dated 06.08.2018.
Mr.Sailendra Mamidi represented on behalf of the Revenue and Mr.Saroj Kumar Parida represented on behalf of the Assessee.
3. Since the assessee pertaining to Assessment Year is common in all these appeals, we heard these appeals together and dispose of the same by this common order.
3.1 All these three appeals filed by the Revenue is delayed by 07 days for which the Assessing Officer has filed an affidavit for condonation of delay. The delay is on account of the appeal files ,3059,3064,3029/chny/18 :- 3 -: T.N.Generation and Cistribution Corpn ltd inadvertently got mixed up with other files. Consequently the delay in filing these appeals of Revenue is condoned.
4. At the outset, it is fairly agreed by both the parties that the tax effect involved in these three appeals of Revenue does not exceed Rs.50,00,000/- in each of these appeals.
Vide CBDT circular No.17/2019 in F.No.279/Misc.142/2007- ITJ(Pt) dated 8th August, 2019, the income tax department has further liberalized its policy for not filing appeals against the decisions of the appellate authorities in favour of the taxpayers, wherein tax involved is below certain threshold limits, and announced its policy decision not to file, or press, the appeals, before this Tribunal, against the appellate orders favourable to the assessee in the cases in which overall tax effect, excluding interest except when interest itself is in dispute, is Rs 50,00,000 or less.
In view of the above factual background and the concession by this CBDT circular, all these appeals must be dismissed as withdrawn and the related cross objections must be dismissed as infructuous.
This circular, only enhances the monetary limits and gives further relaxation. The old circular, beyond any dispute or ,3059,3064,3029/chny/18 :- 4 -: T.N.Generation and Cistribution Corpn ltd controversy, categorically applied to the pending appeals as on the date of issuance of circular.
The circular dated 8th August 2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular No. 3/2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of the said circular. This is evident from the following extracts from the circular dated 8thAugust 2019:
“2. As a step towards further management of litigation. it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals/SLPs in Income-tax Monetary matters Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000
Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate
authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed. para 5 of the circular is substituted by the following para:
,3059,3064,3029/chny/18 :- 5 -: T.N.Generation and Cistribution Corpn ltd
5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of everyassessee. 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 specified in para 3. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para-3. 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 specified in para 3. In case where a composite order/ judgement involves more than one assessee, each assessee shall be dealt with separately
The said modifications shall come into effect from the date of issue of this Circular.”
Clearly, all other portions of the circular no. 3 of 2018 (supra) have remained intact. The portion which has remained intact includes paragraph 13 of the aforesaid circular which is as follows:
“13. This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. Pending appeals below the specified tax limits in pare 3 above may be withdrawn/ not pressed.”
The Hon’ble Supreme Court in the case of The Commissioner of Income Tax-5,New Delhi Vs. Keshav Power Ltd., in SLP No.21497/2019 dated 16.08.2019 reported in 2019(8)TMI 811(SC) has also applied the Circular No.17/2019 dated 08.08.2019 has dismissed the appeal holding as follows: ,3059,3064,3029/chny/18 :- 6 -: T.N.Generation and Cistribution Corpn ltd
“Since the tax effect involved in the matter is less than Rs.2/- crores, going by the latest circular issued by the CBDT, we see no reason to interfere in this matter. The Special Leave Petition is dismissed, leaving all the questions of law open”.
Learned Commissioner (DR) submits liberty may kindly be given to point out, upon necessary further verifications, and to seek recall the dismissal of appeals and restoration of the appeals in the cases (i) in which it can be demonstrated that the appeals are covered by the exceptions, and (ii) which are inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular (supra), exceeds Rs 50,00,000. None opposes this prayer; we accept the same. We make it clear that the appellants shall be at liberty to point out the cases which are wrongly included in the appeals so summarily dismissed, either owing to wrong computation of tax effect or owning to such cases being covered by the permissible exceptions- or for any other reason, and we will take appropriate remedial steps in this regard.
In the circumstances, respectfully following the principles laid down by the Hon”ble Supreme Court in the case of the Commissioner of Income Tax-5,New Delhi Vs. Keshav Power Ltd., referred to supra and in the light of the above discussions, all the appeals filed by the Revenue are found to be non-maintainable. ,3059,3064,3029/chny/18 :- 7 -: T.N.Generation and Cistribution Corpn ltd
In the result, all the appeals of Revenue for assessment years 2007-08, 2008-09 & 2013-14 are dismissed as withdrawn.
Now, we proceed to deal with the assessee’s appeal in ITA No.3029/chny/2018.
The appeal has been filed by the assessee on 24.11.2018.
Defect notice dated 11.12.2018 has been sent to the assessee by RPAD intimating the following defects:
(i) Grounds of Appeal before ITAT not filed in Triplicate (ii) Original Form 36 not filed in Triplicte The above defects were sought to be cured by the assessee.
15.1 The Appeal was posted for hearing on 11.03.2019, 13.03.2019, 28.05.2019 and subsequently, the appeal was posted for hearing today, that is on 18.09.2019. However,the defects are not being cured, in spite of adequate opportunities afforded.
Consequently, the appeal filed by the Assessee stands dismissed for defect uncured by applying the principles laid down by the Hon’ble Jurisdictional High Court in the case of Prasad Productions P. Ltd. Vs. Income-Tax Appellate Tribunal [1997] 226 ITR 778 (Mad). ,3059,3064,3029/chny/18 :- 8 -: T.N.Generation and Cistribution Corpn ltd
In the result, the appeal of assessee is dismissed in liminie on account of defects uncured.
To sum up, all the three appeals of the Revenue are dismissed as withdrawn and the appeal of assessee is dismissed in liminie on account of defects uncured.
Order pronounced in the open court after conclusion of hearing on 18th September, 2019, at Chennai.