What did the Tribunal hold?

The Tribunal dismissed the appeal filed by the Revenue. This was done in accordance with CBDT Circulars which specify monetary limits for filing appeals. The tax effect in this case was below the prescribed limit.

The Revenue filed an appeal before the ITAT against an order of the CIT(Appeals). The appeal was filed for the assessment year 2012-13. The Revenue's appeal was based on an order passed by the Assessing Officer under Section 143(3) of the Income-tax Act.

What were the issues?

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

ITO vs Shri Ghanshyam Das Vasvani… | ITAT Raipur 2022

Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: SHRI RAVISH SOOD & SHRI RATHOD KAMLESH JAYANTBHAI

For Respondent: Shri G.N Singh, DR

Hearing: 31.05.2022Pronounced: 31.05.2022

आदेश / ORDER

PER RAVISH SOOD, JM:

The present appeal filed by the Revenue is directed against the order passed by the CIT(Appeals)-II, Raipur (C.G.) dated 23.02.2017, 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 31.03.2015, for assessment year 2012-13.

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) 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 3 Income Tax Officer-4(3) Vs. Shri Ghanshyam Das Vasvani, ITA No. 85/RPR/2017 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/-.

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.

4 Income Tax Officer-4(3) Vs. Shri Ghanshyam Das Vasvani, ITA No. 85/RPR/2017

In the result, appeal of the Revenue is dismissed in terms of our aforesaid observations. Order pronounced in open court on 31st day of May, 2022.

Sd/- Sd/- RATHOD KAMLESH JAYANTBHAI RAVISH SOOD (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) रायपुर/ RAIPUR ; �दनांक / Dated : 31st May, 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)-II, Raipur (C.G) 4. The Pr. CIT-II, 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.

5 Income Tax Officer-4(3) Vs. Shri Ghanshyam Das Vasvani, ITA No. 85/RPR/2017

Date 1 Draft dictated on 31.05.2022 Sr.PS/PS 2 Draft placed before author 31.05.2022 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. Sr.PS/PS 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

THE INCOME TAX OFFICER -4(3), RAIPUR, RAIPUR (CG) vs. SHRI GHANSHYAM DAS VASVANI, RAIPUR, RAIPUR (CG)

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