What did the Tribunal hold?

The Tribunal held that as the tax effect in the appeal was less than the revised monetary limit of Rs. 50.00 lakh prescribed by CBDT circulars, the appeal was not maintainable.

The Revenue filed an appeal before the ITAT. The assessee's representative pointed out that the tax effect was below the revised monetary limit for filing appeals. The Revenue's representative conceded to this fact.

What were the issues?

Whether an appeal filed by the Revenue is maintainable when the tax effect is below the prescribed monetary limit for filing appeals.

ITO vs M/S Gramin Vikas Sevak Sahkari… | ITAT Nagpur 2022

Income Tax Appellate Tribunal, SMC BENCH, NAGPUR

Before: SHRI R.S. SYAL

For Appellant: Shri Rachit Thakar

For Respondent: Shri G.J. Ninawe

Assessee by Shri Rachit Thakar Revenue by Shri G.J. Ninawe Date of hearing 03-10-2022 Date of pronouncement 03-10-2022 आदेश / ORDER PER R.S. SYAL, VP: This appeal by the Revenue is directed against the order passed by the CIT(A)-2, Nagpur, dated 22-04-2019 in relation to the assessment year 2010-11.

At the outset, the ld. AR submitted that the tax effect in this case is less than Rs.50.00 lakh, to which the ld. DR fairly conceded.

M/s. Gramin Vikas Sevak Sahakari Pat Sanstha Maryadit

The CBDT has issued circular No.17/2019 dated 08-08-2019 revising upward the monetary limits for filing of appeals by the Department in Income-tax Cases before various appellate forums. The earlier circular No.03/2018 dated 11-07-2018 fixed monetary limit for filing of appeals by the Revenue before the Tribunal at Rs.20.00 lakh. Such limit has now been enhanced in the recent Circular dated 08-08-2019 to Rs.50.00 lakh. Since tax effect in the instant appeal is less than the revised monetary limit of Rs.50.00 lakh, we are not inclined to entertain this appeal.

At this juncture, it is pertinent to note that the CBDT vide F.No.279/Misc/M-13/2018-ITJ dated 20-08-2019 has clarified that the revised monetary limits so mentioned in Circular No.17/2019 are applicable to all pending appeals. Not only that, it has further been directed to the competent authorities to withdraw all such appeals on or before 31-10-2019. However, it is made clear that if the tax effect in this particular appeal is found out to be more than the prescribed monetary limit of Rs.50.00 lakh or the case is covered by an exception, it will be open to the Revenue to move the Tribunal for taking necessary action.

M/s. Gramin Vikas Sevak Sahakari Pat Sanstha Maryadit

In view of the foregoing discussion, I dismiss the appeal filed by the Revenue.

Order pronounced in the Open Court on 3rd October, 2022.

INCOME TAX OFFICER, WARD-2, CHANDRAPUR vs. M/S GRAMIN VIKAS SEVAK SAHKARI PAT SANSTHA MARYADIT, SINDEWAHI

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