ACIT, CC-26, DELHI vs. JAI MAA BHAWANI OVERSEAS PVT. LTD., DELHI

At the outset, at the time of hearing, the ld. Counsel for the assessee brought to our attention that CBDT vide Circular No. 17/2019 dated 08th August 2019 has decided that the revenue would not prefer any appeal before the Tribunal if the tax effect is less than Rs. 50 lakhs. Therefore, he pleaded that the appeal of the revenue be decided as per the Instruction of the CBDT.

The Ld. CIT-DR did not object the above proposition.

Upon careful consideration, we find that the CBDT vide Circular No.17/2019 dated 08.08.2019 has revised the monetary limit for filing the appeals before the Tribunal to Rs.50 Lacs. Further, CBDT vide letter dated 20.08.2019 has also clarified that Circular No.17/2019 would be applicable to all pending appeals. In such circumstances, the present appeal filed by the Revenue in case of low tax effect is not maintainable.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for re-institution of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescribed in para-10 of the Circular dated 11.07.2018.

In conclusion, by applying the CBDT Circular dated 08.08.2019 and letter dated 20.08.2019 (supra), the captioned appeal of the Revenue is dismissed.

The ld. Counsel for the assessee pleaded to withdraw the cross objection and we permit the same.

In the result, appeal of the Revenue stands dismissed and Cross Objection of the assessee is also dismissed.