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Income Tax Appellate Tribunal, “J” BENCH, MUMBAI
appeals No. CIT(A)-18/IT-54/ITO-8(3)(3)/14-15 & CIT(A)-18/IT-274/AC- 11(3)(1)/15-16 of even date 28.02.2017. The Assessments were framed by the Income Tax Officer & Asst. Commissioner of Income Tax, Ward- 8(3)-3, Circle-11(3)(1), Mumbai (in short ‘ITO/ AO) for the A.Ys. 2010-11 & 2011-12 vide different order dated 20.03.2014 & 15.05.2015 under section 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’).
In these appeals, for AYs 2010-11 & 2011-12 in & 4052/Mum/2017 contains disallowance of ₹ 57,29,300/- & Rs. 55,00,600/- respectively, which is under challenged on account of allowance of consultancy charges by CIT(A). The learned Counsel for the assessee stated that the tax effect in this appeal is ₹ 19,47,389/- for AY 2010-11 & ₹ 18,69,654/- for AY 2011-12, which is below the tax effect circular brought by the Central Board of Direct Taxes (CBDT) vide circular F.No. 279/Misc. 142/2007-ITJ (Pt) dated 11.07.2018, wherein monetary limits and other conditions for filing of departmental appeal before the Tribunal has been revised and fixed at ₹ 20 lacs. He placed the copy of this circular on record.
We have gone through the circular and noticed that this circular will apply to pending appeals also & we are referring to Para 13 of the circular for this proposition, which reads as under: -
“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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.”
In view of the above, we are of the view that the Revenue’s appeals are fully covered by CBDT circular No. 3 of 2018 and there is no exception brought out by the Revenue that these appeals falls under any of the exception as provided in Para 10 which reads as under: -
“10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 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 m the case has been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/ bank accounts.”
When this was confronted to the learned Sr. Departmental Representative, he could not point out that these appeals falls under any of the exception as provided in Circular No. 3 of 2018. Admittedly, the tax effect in these appeals of Revenue is much below the prescribed limit of filing appeal before the Tribunal i.e. ₹ 20 lacs as per CBDT circular No. 3 of 2018. In view of the above, these appeals of Revenue are dismissed as withdrawn in view of Circular No 3 of 2018.
In the result, the appeals of Revenue are dismissed as withdrawn. Order pronounced in the open court on 28-01-2019.