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Facts
The Revenue filed an appeal against an order of the Pr. Commissioner of Income Tax for Assessment Year 2014-15. The Tribunal noted that the tax effect on the disputed additions was less than Rs. 50 lakhs, which is the monetary limit specified for appeals to the Appellate Tribunal.
Held
The Income Tax Appellate Tribunal dismissed the Revenue's appeal. It held that, in accordance with CBDT Circular No. 17/2019 dated 08.08.2019, which applies retrospectively, appeals with a tax effect below the prescribed monetary limit of Rs. 50 lakhs are not maintainable before the Appellate Tribunal.
Key Issues
Whether an appeal filed by the Revenue is maintainable before the Income Tax Appellate Tribunal if the tax effect involved is below the monetary limits prescribed by CBDT Circular No. 17/2019.
Sections Cited
CBDT Circular No. 17/2019
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Income Tax Appellate Tribunal, MUMBAI BENCH ‘G’, MUMBAI
Before: SHRI AMARJIT SINGH, HONBLE & SHRI ANIKESH BANERJEE, HONBLE
The present appeal filed by the Revenue is directed against the order dated 06.12.2023 of the Pr. Commissioner of Income Tax-41, Mumbai for Assessment Year 2014-15.
2 It is seen, at the outset, that the tax effect on the disputed additions before us is less than Rs.50 lacs as the prescribed in the CBDT’s latest Circular No.17/2019 dated 08.08.2019. It will be pertinent to reproduce the relevant portion of the said Circular as follows:-
“2 . As a step toward 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:
S.No. Appeals/SLPs in Income-tax Monetary Limit matters (Rs.) 1. Before Appellate Tribunal 50,00,000 2.1 We find that intention behind the Circular No.17/2019 dated 08.08.2019 needs to be understood in the following perspective:- 3. 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-à-vis where composite order for more than one assessment year 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 every assessee. if, 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 assessments 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/judgment involves more than one assessee, each assessee shall be dealt with separately.”
2.2. On perusal of the Circular No.17/2019 dated 08.08.2019 and the materials available on record, it reveals that this circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals as well. Hon’ble apex court in Commissioner of Customs vs. Indian Oil Corporation Ltd reported in 267 ITR 272 (SC) has settled the law that CBDT’s circulars are very much binding on revenue authorities.
The ld. DR has also fairly stated that tax effect involved in appeal is less than the prescribed limit.
Saptashrungi Co-operative Credit Society Limited A.Y. 2014-15 4. In view of above stated position, the appeal of the Revenue is dismissed because of low tax effect than the prescribed limits as per CBDT Circular No.17/2019 (supra). Order pronounced in the open court on 29.08.2024