ITO, WARD 14(2), KOLKATA, KOLKATA vs. M/S B.B.C. PROJECT SERVICES PVT. LTD., KOLKATA

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ITA 1670/KOL/2016Status: DisposedITAT Kolkata31 December 2019AY 2010-115 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was contrary to the revised CBDT circular regarding monetary limits for appeals. Therefore, the appeal was dismissed in limine.

What were the facts?

The Revenue filed a miscellaneous application to recall a previous order of the Tribunal. The Tribunal recalled its earlier order because the tax effect in the appeal was within the revised monetary limit prescribed by a new CBDT circular.

What were the issues?

Whether the Revenue's appeal should be dismissed based on the revised monetary limits for filing appeals as per the new CBDT circular, even if the appeal was filed before the circular was issued.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, “B”, BENCH KOLKATA

Before: SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM

For Appellant: Smt. Ranu Biswas, Addl. CIT DR
Hearing: 08/11/2019Pronounced: 31/12/2019

Heard together (2 matters)

M.A. No.5/Kol/2019
ITA No.1670/Kol/2016

Read from the judgment's own cause title. This page is filed under one of them.

This is a miscellaneous application filed by the revenue praying to recall the order of the Tribunal dated 30/07/2018.

2.

The case of the revenue in this miscellaneous application is that the tax effect in this appeal is more than the limit prescribed by the CBDT therefore, the order should be recalled and should be heard on merits.

3.

We have heard the ld. D.R. for the revenue and gone through the material available on record and we note that the tax effect involved in this revenue’s appeal does not come in the ambit of old CBDT circular and this Tribunal has dismissed the appeal of the revenue on account of tax effect. Since the amount involved in the revenue’s appeal is more than the tax effect therefore we recall the order of the Tribunal dated 30.07.2018.

4.

In the result, the miscellaneous application of the revenue is allowed.

5.

With the consent of ld. D.R for the Revenue, the appeal of the Revenue has also heard today itself. We note that in the earlier order of the Tribunal dated 30.07.2018 when the Department appeal was dismissed on account of tax effect at that point of time the limit of tax effect was to the tune of Rs. 20,00,000/-. Later on, the CBDT has issued another Circular No. 17/2019 dated 08.08.2019 wherein the tax effect limit has been increased from Rs. 20 lakh to Rs. 50 lakh and this appeal of the revenue falls in the zone of new tax effect limit prescribed by CBDT vide Circular No. 17/2019 dated 08.08.2019, therefore, we are of the view that this appeal needs to be dismissed on account of tax effect considering the new circular of the CBDT vide circular no. 17/2019 dated 08.08.2019.

6.

Now we shall take the revenue’s appeal in A.Y. 2010-11.

M/s B.B.C. Project Services Pvt. Ltd. MA No. 5/Kol/2019 (Arising out of A.Y: 2010-11 7. The captioned appeal filed by the Revenue, pertaining to assessment year 2010- 11, is directed against the order passed by the Commissioner of Income Tax (Appeal)-4, Kolkata in appeal no. 191/CIT(A)-4/Ward-10(2)/Kol/14-15, which in turn arises out of an assessment order passed by the Assessing Officer u/s 144 of the Income Tax Act, 1961 (in short the ‘Act’) dated 15/03/2013.

8.

Recently the CBDT has issued Circular No. 17/2019 dated 08.08.2019, whereby the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:

1.

Before Appellate Tribunal Rs. 50,00,000/- 2. Before High Court Rs.1,00,00,000/- 3. Before Supreme Court Rs. 2,00,00,000/-

9.

In the present case, the tax effect by the revenue is less than Rs.50,00,000/-. Though this appeal had been filed by the revenue on 19.08.2016 and was within the monetary limit in the form of tax effect for filing appeals before Tribunal, in view of the recent Circular of CBDT, even such appeals will be governed by the new monetary limits laid down in the CBDT Circular No.17/2019 referred to above.

10.

It is a settled law that the Circulars issued by CBDT are binding on the Revenue. This position was confirmed by the Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd. reported in 267 ITR 272 wherein their Lordships examined the earlier decisions of the Apex Court with regard to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the statute.

M/s B.B.C. Project Services Pvt. Ltd. MA No. 5/Kol/2019 (Arising out of A.Y: 2010-11 The appeal under consideration has certainly been filed contrary to the Circular issued by the CBDT Circular No.17 dated 08.08.2019 11. In the event, the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.50 lakhs or despite low tax effect the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order.

12.

In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department is dismissed in limine.

13.

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

Order is pronounced in the open court on 31.12.2019.

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