In the Income-Tax Appellate Tribunal,
Delhi Bench `E', New Delhi
Before : Shri Bhavnesh Saini, Judicial Member And
Shri O.P. Kant, Accountant Member
ITA No.912/Del/2017
Assessment Year: 2012-13
ACIT, Central Circle-26, vs. Majestic Properties Pvt. Ltd.,
New Delhi 1/18B, Asaf Ali Road,
New Delhi.
PAN- AAACM7158E
(Appellant) (Respondent)
Appellant by Sh. Atiq Ahmed, Sr. DR
Respondent by Sh. Deepesh Garg, Advocate
Date of hearing 17.09.2019
Date of 31.10.2019
pronouncement
ORDER
Per O.P. Kant, A.M.:
The present appeal by the Revenue is directed against order dated
28.11.2016, passed by learned Commissioner of Income Tax (Appeals)-29,
New Delhi, for assessment year 2012-13.
2. At the outset, the learned Sr. DR 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.
ITA No. 912/Del/2017 2
3. We find that the CBDT vide Circular No. 17/2019 dated 08.08.2019, has
enhanced the monetary limit for filing of appeals by the Department before
the Income Tax Appellate Tribunal from Rs.20 lakhs to Rs.50 lakhs. The said
circular also makes reference to the earlier Circular No. 3/2018, dated
11.7.2018 and, especially states that as a step towards further management of
litigation, the Board has decided to enhance the monetary limit for filing of the
appeals. This circular is not in supersession of the earlier circular but only
amends the monetary limits as well as gives clarification with regard to
paragraph 5 of the earlier circular. This, inter alia, means that all the other
conditions mentioned in the earlier Circular No. 3 of 2018 dated 11.7.2018
will apply mutatis mutandis including that, it will apply to all the pending
appeals. For the sake of ready reference, relevant portion of the latest circular,
i.e., Circular No. 17/2019, dated 08.08.2019, is reproduced as under:
"Subject: - Further Enhancement of Monetary limits for filing
of appeals by the Department before Income Tax Appellate
Tribunal, High Courts and SLPs/appeals before Supreme
Court - Amendment to Circular 3 of 2018 - Measures for
reducing litigation.-
Reference is invited to the Circular No.3 of2018 dated
11.07.2018 (the Circular) of Central Board of Direct Taxes
(the Board) and its amendment dated 20th August. 2018 vide
which monetary limits for filing of income tax appeals by the
Department before Income Tax Appellate Tribunal. High
Courts and SLPs/appeals before Supreme Court have been
specified. Representation has also been received that an
anomaly in the said circular at para 5 may be removed.
"2. As a step towards further management of litigation. it has
been decided by the Board that monetary limits for filing of
ITA No. 912/Del/2017 3
appeals in income-tax cases be enhanced further through
amendment in Para 3 of the Circular mentioned above and
accordingly, the table for monetary limits specified in Para 3
of the Circular shall read as follows:
S.No Appeals/SLPs in Monetary Limit (Rs.)
income tax matters
1. Before Appellate 50,00,000/-
Tribunal
2. Before High Court 1,00.00.000/-
3. Before Supreme 2,00,00,000/-
Court
3. Further, with a view to provide parity in filing of appeals in
scenarios where separate order is passed by higher appellate
authorities for each assessment year vis-a-vis where composite
order for more than one assessment years is passed. para 5 of the
circular is substituted by the following para:
"5. The Assessing Officer shall calculate the tax effect
separately for every assessment year in respect of the
disputed issues in the case of every assessee. If, in the case of
an assessee, the disputed issues arise in more than one
assessment year, appeal can be filed in respect of such
assessment year or years in which the tax effect in respect of
the disputed issues exceeds the monetary limit specified in
para 3. No appeal shall be filed in respect of an assessment
year or years in which the tax effect is less than the monetary
limit specified in para 3. Further, even in the case of
composite order of any High Court or appellate authority
which involves more than one assessment year and common
issues in more than one assessment year, no appeal shall be
filed in respect of an assessment year or years in which the
ITA No. 912/Del/2017 4
tax effect is less than the monetary limit specified in para 3. In
case where a composite order/ judgement involves more than
one assessee. each assessee shall be dealt with separately.
4. The said modifications shall come into effect from the date
of issue of this Circular.
5. The same may be brought to the notice of all concerned.
6. This issues under section 268A of the Income-tax Act,
1961."
4. Further, CBDT vide Circular dated 20th August, 2019 (F. No. 279/19-
93/2018-ITJ), has clarified that it will apply to all pending appeals. Thus, in
view of the aforesaid circular, the appeal of the Revenue is dismissed as non-
maintainable as the tax effect involved in the appeal is below Rs.50 lakhs.
However, it is made clear that the Department is at liberty to file
Miscellaneous Application for recalling of the order, if the tax effect is found to
be more than the prescribed limit of Rs.50,00,000/- or any of the conditions
etc., as available in the amendment carried out in para 10 of Circular No.
3/2018, dated 20.08.2018, is made out.
5. In the result, the appeal of Revenue is dismissed.
Order is pronounced in the open court on 31 October, 2019.
Sd/- Sd/-
(Bhavnesh Saini) (O.P. Kant)
Judicial member Accountant Member
Dated: 31 Oct., 2019
*aks*
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