ITO,WARD-1(1), CUTTACK vs. THE CUTTACK CREDIT CO-OP. SOCEITY LTD, CUTTACK

The appeal is time barred by 111 The appeal is time barred by 111 days. The revenue has filed condonaton days. The revenue has filed condonaton petition to condone the delay in filing the appeal before the Tribunal, stating that petition to condone the delay in filing the appeal before the Tribunal, stating that petition to condone the delay in filing the appeal before the Tribunal, stating that the limitation to file appeal before the Tribunal has expired due to the fact that the the limitation to file appeal before the Tribunal has expired due to the fact that the the limitation to file appeal before the Tribunal has expired due to the fact that the nationwide lockdown for COVID lockdown for COVID-19 pandemic, the offices were closed and further 19 pandemic, the offices were closed and further worked with limited workforce and the Hon’ble Supreme Court has extended the worked with limited workforce and the Hon’ble Supreme Court has extended the worked with limited workforce and the Hon’ble Supreme Court has extended the time limit for filing appeal vide its order in W.P. No.Civil (03)/2020 dated time limit for filing appeal vide its order in W.P. No.Civil (03)/2020 dated time limit for filing appeal vide its order in W.P. No.Civil (03)/2020 dated 23.3.2020. It was in this backdrop It was in this backdrop that the appeal was not filed within the that the appeal was not filed within the stipulated time period and, therefore, it is requested to condone the delay and stipulated time period and, therefore, it is requested to condone the delay and stipulated time period and, therefore, it is requested to condone the delay and

After going through the condonation petition, and considering the submissions of both the parties, it appears that the delay in filing the appeal occurred due to COVID-19 Lockdown and all the Government Offices were closed at the relevant time therefore the delay of 111 days in filing the appeal by the revenue is condoned and the appeal is admitted for adjudication.

The revenue is aggrieved by the order of the ld CIT(A) in deleting addition of Rs.1,58,80,813/- from interest on fixed deposits made in the co-operative banks u/s. 80P(2)(a)(i)/80P(2)(d) of the I.T.Act.

At the outset, ld A.R. of the assessee submitted that in this case, the tax effect is below the monetary limit as per the Circular No.17/2019 issued by CBDT dated 8th August, 2019, i.e. Rs.50,00,000/-, therefore, the appeal is not maintainable and should be dismissed.

We find that CBDT vide circular No.17/2019 in F.No.279/Misc.142/2007- ITJ(Pt) dated 8th August, 2019, has further liberalized its policy for not filing appeals against the decisions of the appellate authorities in favour of the taxpayers, wherein tax involved is below certain threshold limits, and announced its policy decision not to file, or press, the appeals, before this Tribunal, against the appellate orders favourable to the assessee in the cases in which overall tax effect, excluding interest except when interest itself is in dispute, is Rs 50,00,000/- or less.

This circular, only enhances the monetary limits and gives further relaxation. The old circular, beyond any dispute or controversy, categorically applied to the pending appeals as on the date of issuance of circular.

The circular dated 8th August 2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular No. 3/2018 (subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of the said circular.

The Hon'ble Supreme Court in the case of The Commissioner of Income Tax-5,New Delhi Vs. Keshav Power Ltd., in SLP No.21497/2019 dated 16.08.2019 reported in 2019(8)TMI 811(SC) has also applied the Circular No.17/2019 dated 08.08.2019 and has dismissed the appeal holding as follows:

In the circumstances, respectfully following the principles laid down by the Hon"ble Supreme Court in the case of the Commissioner of Income Tax-5, New Delhi Vs. Keshav Power Ltd. (supra) and in the light of the above discussions, the appeal filed by the Revenue is found to be non-maintainable and hence, dismissed.

In the result, appeal of the revenue is dismissed. Order pronounced on 9/3/2022.