What did the High Court hold?

The Tribunal held that in view of the CBDT circulars, which are applicable retrospectively to pending appeals, the appeals are not maintainable. Therefore, the appeals are to be dismissed.

Three appeals were filed before the ITAT. The tax effect in all three appeals was below the monetary limits prescribed by CBDT Circular No. 3 of 2018 and subsequent Circular No. 17/19.

What were the issues?

The primary issue was whether the appeals were maintainable given the tax effect was below the monetary limits stipulated in CBDT circulars, which were applicable retrospectively.

CIT vs Carpet India | Punjab & Haryana High Court 2023

ITA-190-2009 (O&M) 2023:PHHC:149249-DB

This order shall dispose of three appeals i.e. ITA-190-2009, ITA- 592-2009 and ITA-709-2010 as common questions of law and facts are involved. 2. It has been brought to our notice that the tax effect in all the three appeals would be below the limit fixed by the Circular No.3 of 2018 issued by the Department of Central Board of Direct Taxes, New Delhi dated 11.07.2018 i.e. Rs.20 lakhs in ITA-190-2009, Rs.25,93,950/- in ITA-709-2010 and Rs.24,89,600/-in ITA-592-2009. The said Circular also provides that it is VANDANA 2023.11.29 10:30 I attest to the accuracy and integrity of this document

ITA-190-2009 (O&M) 2023:PHHC:149249-DB

applicable with retrospective effect in the pending appeals. The relevant clause reads as under:- “3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: Sr. No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1,00,00,000

XXX XXX 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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.”

The said amount has further been enhanced to Rs.1 crore being the monetary limit vide Circular No.17/19 dated 08.08.2019. 4. Keeping in view the above, we are of the considered opinion that in view of Circular of the Revenue, the present appeals are to be dismissed as not maintainable. 5. Ordered accordingly. 6. Pending application(s), if any, shall also stand disposed of.

Whether speaking/reasoned:

Yes Whether reportable:

No VANDANA 2023.11.29 10:30 I attest to the accuracy and integrity of this document

C I T vs. CARPET INDIA

What did the High Court hold?

What were the facts?

What were the issues?

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