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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI GEORGE MATHAN & SHRI S JAYARAMAN
आदेश / O R D E R PER BENCH:
These two appeals and Cross Objections pertain to the appeals are filed by the Revenue and the assessee against the common Order of the Commissioner of Income Tax (Appeals)-19, Chennai, in & 14/15-16 dated 17.05.2017 for assessment years 2010-11 & 2011-12. & 1984/Chny/2017 & C.O Nos.153 & 154/Chny/2017 :- 2 -:
The cross objections taken up for hearing are only such cross objections as emanate from these appeals and are broadly in support of the orders passed by the Commissioner (Appeals).
Mr. S.Bharath, CIT represented on behalf of the Revenue and Mr.T.
Banusekar, C.A represented on behalf of the assessee.
3. The learned Counsel for the Revenue and the Assessee fairly conceded before us that the tax effect involved in this appeal does not exceed Rs.50 /- lakhs.
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, these appeals filed by the Revenue must be dismissed as & 1984/Chny/2017 & C.O Nos.153 & 154/Chny/2017 :- 3 -:
withdrawn and the cross objections filed by the assessee are also dismissed as infructuous.
This circular, only enhances the monetary limits and gives further relaxation. The old circular, beyond any dispute or 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 8th August 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: Sl. Appeals/SLPs in Income-tax Monetary No 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 & 1984/Chny/2017 & C.O Nos.153 & 154/Chny/2017 :- 4 -:
assessment years is passed. para 5 of the circular is substituted by the following para: “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”
4. 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:
“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”.
& 1984/Chny/2017 & C.O Nos.153 & 154/Chny/2017 :- 5 -:
Learned Commissioner (DR) submits liberty may kindly be given to point out, upon necessary further verifications, and to seek recall the dismissal of appeal and restoration of the appeal in the case (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 case which is wrongly included in the appeal 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, both the appeals filed by the Revenue are found to be non-maintainable, and as all the related cross-objections of the assessee arise only as a result of those appeals and merely support the order of the CIT(A), the cross objections filed by the assessee are also dismissed as infructuous. & 1984/Chny/2017 & C.O Nos.153 & 154/Chny/2017 :- 6 -: 12. In the result, both the appeals of Revenue stands dismissed as withdrawn and the cross objections filed by the assessee are also dismissed as infructuous.
Order pronounced in the open Court after conclusion of hearing on the 27th August, 2019 in Chennai.