What did the Tribunal hold?

The Tribunal noted that the CBDT circular enhanced the monetary limit for filing appeals to Rs. 50 lakhs and stated it applies to pending appeals. Consequently, the appeal was dismissed as non-maintainable due to low tax effect.

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 1995-96. The Revenue's counsel brought to the Tribunal's attention a CBDT circular enhancing the monetary limit for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the monetary limits prescribed by CBDT circulars for filing appeals.

ITO vs Sh. Anupam Sushil Garg Prop… | ITAT Delhi 2020

Income Tax Appellate Tribunal, DELHI BENCH: ‘A’ NEW DELHI

Before: SHRI O.P. KANT & MS. SUCHITRA KAMBLE

For Appellant: Shri Sohail Malik, Sr.DR

Hearing: 23.12.2020Pronounced: 23.12.2020

ORDER PER O.P. KANT, AM:

The present appeal by the Revenue is directed against order dated 30.11.2016, passed by learned Commissioner of Income Tax (Appeals)-Muzaffarnagar, for assessment year 1995-96. 2. None present for the appellant. At the outset, the learned Sr. DR brought to our attention that CBDT, vide Circular No. 17/2019 dated 08th August, 2019, has decided that the Revenue would not prefer any appeal before the Tribunal, if the tax effect is less than Rs.50 lakhs. Therefore, he pleaded that the appeal of the Revenue be decided as per the Instruction of the CBDT.

We have heard learned Sr. DR through Video Conferencing and perused the relevant record. We find that the CBDT vide Circular No. 17/2019 dated 08.08.2019, has enhanced the monetary limit for filing of appeals by the Department before the Income Tax Appellate Tribunal from Rs.20 lakhs to Rs.50 lakhs. The said circular also makes reference to the earlier Circular No. 3/2018, dated 11.7.2018 and, especially states that as a step towards further management of litigation, the Board has decided to enhance the monetary limit for filing of the appeals. This circular is not in supersession of the earlier circular but only amends the monetary limits as well as gives clarification with regard to paragraph 5 of the earlier circular. This, inter alia, means that all the other conditions mentioned in the earlier Circular No. 3 of 2018 dated 11.7.2018 will apply mutatis mutandis including that, it will apply to all the pending appeals.

Further, CBDT vide Circular dated 20th August, 2019 (F. No. 279/19-93/2018-ITJ), has clarified that it will apply to all pending appeals. Thus, in view of the aforesaid circular, the appeal of the Revenue is dismissed as non-maintainable as the tax effect involved in the appeal is below Rs.50 lakhs. However, it is made clear that the Department is at liberty to file Miscellaneous Application for recalling of the order, if the tax effect is found to be more than the prescribed limit of Rs.50,00,000/- or any of the conditions etc., as available in the amendment carried out in para 10 of Circular No. 3/2018, dated 20.08.2018, is made out.

In the result, the appeal of Revenue is dismissed.

Order pronounced in the open court on 23rd December, 2020.

ITO, SAHARANPUR vs. SH. ANUPAM SUSHIL GARG PROP., SAHARANPUR

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