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Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
PER BENCH:
All these appeals pertains to Revenue and when called for hearing and pointed out to the learned Sr. DR that the tax effect in these appeals is below the prescribed limit as prescribed 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 Tribunal has been revised and fixed at ₹ 20 lacs for filing of the Departmental appeal, the learned Sr. DR could not controvert the fact that the tax effect in all these appeals of Revenue is below the prescribed limit as prescribed by CBDT circular dated 11.07.2018.
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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.”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 Shri DG Pansari, he could not point out that these appeals falls under any of the exception as provided in Circular No. 3 of 2018 but he only requested that a liberty be given to Revenue for recalling of the order in case the AO found that these cases falls under any of the exceptions as provided in this circular. 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. However, the Revenue is at liberty to get the order recalled in case any of the above appeals falls under the exceptions as provided in above CBDT circular.
The CO No. 197/Mum/2018 arising out of for AY 2012-13 is supportive of the order of CIT(A) and since we have already dismissed the Revenue’s appeal as withdrawn, consequently, the CO has become infructuous and dismissed.
As regards to CO No. 123/Mum/2018 arising out of for AY 2006-07, the learned Counsel for the assessee before us contended that in case Revenue’s appeal is dismissed, the assessee is not interested in prosecuting the Cross Objection. As the learned Counsel for the assessee has not pressed this issue, the same is dismissed as withdrawn.
In the result, these appeals of Revenue are dismissed as withdrawn and the CO’s of the assessee are also dismissed as infructuous.
Order pronounced in the open court on 03-08-2018. AadoSa kI GaaoYaNaa Kulao mao idnaMk 03-08-2018 kao kI ga[- .