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Income Tax Appellate Tribunal, MUMBAI BENCH “H” MUMBAI
Before: SHRI C.N. PRASAD & SHRI N.K. PRADHAN
ORDER PER BENCH The Central Board of Direct Taxes (CBDT) vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.
In the captioned appeals, it seems the tax effect does not exceed the monetary limit of Rs.20,00,000/-. At para 13 of the above Circular, it has been mentioned that: “13. This Circular will apply to SLPs/appeals/cross objection/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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.”
Before us, the Ld. DR submits that liberty may kindly be given to raise, after necessary further verification, and to seek recall the dismissal of appeals and restoration of the appeals in the cases (i) in which it can be shown that the appeals are covered by the exceptions and (ii) which are inadvertently included in this bunch of appeal, wherein the tax effect in terms of the above CBDT Circular, exceed Rs.20,00,000/-. There was no opposition from the Ld. counsels of the assessee to the above submission of the Ld. DR.
We agree with the above contentions of the Ld. DR and make it clear that the appellants shall be at liberty to file Miscellaneous Applications to point out the cases which are wrongly included in these appeals so summarily dismissed, and we will take appropriate remedial measures in this regard.
In view of the above observations, these appeals, involving tax effect of less than Rs.20,00,000/- are dismissed as withdrawn. Order pronounced in the open court on 24/08/2018.