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Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR
Before: SHRI RAVISH SOOD & SHRI ARUN KHODPIA
आदेश / ORDER
PER RAVISH SOOD, JM:
The captioned cross-appeals filed by the assessee and revenue are directed against the order passed by the CIT(Appeals)-1, Raipur dated 06.08.2019, which in turn arises from the order passed by the A.O under Sec.143(3) of the Income-tax Act, 1961 (for short ‘the Act’) dated 19.12.2017 for assessment year 2015-16.
Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the Department before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation.
CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT)
3 M/s. Mamraj & Sons Vs. ITO-1(2), Raipur & 227/RPR/2019 in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the ‘tax effect’. In cases where returned loss is reduced or assessed as income, the ‘tax effect’ would include notional tax on disputed additions. In case of penalty order, the ‘tax effect’ will mean quantum of penalty deleted or reduced in the order to be appealed against.
At para 13 of the above Circular, it has been mentioned that:
“13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.”
As a step towards further management of litigation, CBDT vide Circular No.17/2019, dated 08.08.2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-.
4 M/s. Mamraj & Sons Vs. ITO-1(2), Raipur & 227/RPR/2019
In the instant appeal filed by the Department, it was averred by the ld. A.R that the ‘tax effect’ therein involved was below the monetary limit of Rs.50,00,000/-. The said fact was brought to the notice of the ld. Departmental Representative (for short ‘D.R’) who did not controvert the same.
With the above observations the appeal involving a ‘tax effect’ of less than Rs.50,00,000/- is dismissed.
In the result, appeal of the Revenue in is dismissed in terms of our aforesaid observations.
Adverting to the appeal filed by the assessee in it was submitted by the Ld. AR that he seeks to withdraw the instant appeal.
The Ld. DR did not raise any objection to the seeking of withdrawal of appeal filed by the assessee.
After having heard the parties herein, the appeal filed by the assessee is dismissed as withdrawn in terms of our aforesaid observations.
5 M/s. Mamraj & Sons Vs. ITO-1(2), Raipur & 227/RPR/2019
In the result, appeal of the assessee in is dismissed as withdrawn.
In the combined result, both the appeals of the assessee and the revenue are dismissed in terms of our aforesaid observations. Order pronounced in open court on 27th day of July, 2022.
Sd/- Sd/- ARUN KHODPIA RAVISH SOOD (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) रायपुर/ RAIPUR ; �दनांक / Dated : 27th July, 2022 SB आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to :
1. 1. अपीलाथ� / The Appellant. 2. ��यथ� / The Respondent.
3. The CIT(Appeals)-1, Raipur (C.G) 4. The Pr. CIT-1, Raipur (C.G) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण,रायपुर ब�च, रायपुर / DR, ITAT, Raipur Bench, Raipur. गाड� फ़ाइल / Guard File. 6. आदेशानुसार / BY ORDER, // True Copy // �नजी स�चव / Private Secretary आयकर अपील�य अ�धकरण, रायपुर / ITAT, Raipur.
6 M/s. Mamraj & Sons Vs. ITO-1(2), Raipur & 227/RPR/2019
Date 1 Draft dictated on 27.07.2022 Sr.PS/PS 2 Draft placed before author 27.07.2022 Sr.PS/PS 3 Draft proposed and placed JM/AM before the second Member 4 Draft discussed/approved by AM/JM second Member 5 Approved draft comes to the Sr.PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order