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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL
Before: SHRI G.S. PANNU BEFORE SHRI G.S. PANNU & BEFORE SHRI G.S. PANNU & SHRI AMIT SHUKLASHRI AMIT SHUKLA SHRI AMIT SHUKLA SHRI AMIT SHUKLA
This appeal by the Revenue for the assessment year 2012-13 is directed against the order of learned CIT(A), Faridabad dated 27th February, 2019.
At the time of hearing before us, it was submitted by the learned counsel for the assessee that the tax effect in this appeal by the Revenue is below `50 lakhs. The CBDT in its Circular No.17/2019 dated 8th August, 2019 has revised the monetary limit for filing of the departmental appeals to the ITAT at `50 lakhs.
2 ITA-4101/Del/2019
Learned Senior DR, on the other hand, submitted that the tax effect in this appeal by the Revenue is exactly `50 lakhs. Therefore, it is not covered by the aforesaid Circular of the CBDT.
We have heard the arguments of both the sides and perused the material placed before us. In order to decide the issue, the phraseology of the Circular Nos.3/2018 and No.17/2019 dated 11th July, 2018 and 8th August, 2019 respectively of the CBDT is relevant. The relevant portion of the Circular dated 11th July, 2018 (supra) is reproduced hereunder :-
“3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:
S.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
It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.”
(emphasis by underlining provided by us)
Subsequently, the Circular dated 8th August, 2019 (supra) has 5. sought to enhance the monetary limits prescribed in Para 3 of Circular dated 11th July, 2018 (supra); and, the relevant portion of Circular dated 8th August, 2019 (supra) prescribing the enhanced limits reads as under :-
2. As a step towards 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
3 ITA-4101/Del/2019 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 matters Monetary Limit (Rs.) 1. Before Appellate Tribunal 50,00,000 2. Before High Court 1,00,00,000 3. Before Supreme Court 2,00,00,000
Ostensibly, the aforesaid Circulars seek to provide that in cases where the tax effect in appeal “does not exceed” `50 lakhs, no appeal should be filed by the Department before the Appellate Tribunal. In the present case, the tax in dispute is `50 lakhs and obviously, it cannot be said to be an amount which exceeds the limit prescribed in the Circular. In this view of the matter, we uphold the point of view canvassed by the respondent-assessee that the filing of the present appeal by the Revenue is governed by the mandate of the CBDT Circular No.17/2019 dated 8th August, 2019 read with Circular No.3/2018 dated 11th July, 2018. In view thereof, the captioned appeal of the Revenue is treated as non-maintainable and is, accordingly, dismissed.
In the result, the appeal of the Revenue is dismissed.
Above decision was announced in the presence of both the parties on conclusion of Virtual Hearing on 7th December, 2020.