INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "B": NEW DELHI
BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEMBER
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
ITA No. 5172/Del/2017
(Assessment Year: 2014-15)
ACIT, Vs. Countrywide Promotors Pvt. Ltd,
Central Circle-32, M-11, Middle Circle, Connaught
New Delhi Circus, New Delhi
PAN: AAACC5280H
(Appellant) (Respondent)
ITA No. 7864/Del/2017
(Assessment Year: 2006-07)
ACIT, Vs. Countrywide Promoters Pvt. Ltd,
Central Circle-32, M-11, Middle Circle, Connaught
New Delhi Circus, New Delhi
PAN: AAACC3536A
Assessee by : Ms. Nidhi Srivastava, CIT DR
Revenue by: Shri Ajay Bhagwani, CA
Date of Hearing 14/11/2019
Date of pronouncement 18/11/2019
ORDER
PER PRASHANT MAHARISHI, A. M.
1. These are appeals filed by the revenue against the order of the ld CIT(A)-30,
New Delhi dated 11.10.2017 for the AY 2006-07 and 05.05.2017 for the AY
2014-15 .
2. At the outset of the hearing itself, the ld. AR 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.
3. The ld DRs vehemently objected to the same and submitted that it applies
prospectively and not to pending appeals.
4. We have heard the contention of both the parties and perused the material
on record. We find that the CBDT vide Circular No. 17/2019 dated 08th
August 2019 has enhanced the monetary limit for filing the appeal by the
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department before Income Tax Appellate Tribunal, Hon'ble High Courts and
Hon'ble Supreme Court. The relevant para of the aforesaid circular is
reproduced as under :-
"2. As a step towards further management of litigation, it has been
decided by the Board that monetary limits for filing of 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 Income-tax Monetary Limit (Rs.)
matters
1. Before Appellate Tribunal 50.00,000
2. Before High Court 1.00.00.000
3. Before Supreme Court 2.00,00.000
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 y ears 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 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."
5. We find that the tax effect involves in the appeal of the Revenue is below Rs.
50 lakhs. There is no dispute that the Board's instructions or directions
issued to the Income-tax authorities are binding on those authorities,
therefore, the Department should have withdrawn/not pressed the present
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appeal in view of the aforesaid instruction since the tax effect in the instant
appeal is less than the amount of Rs. 50 lakhs. The issue of applicability of
the above circular to pending appeals has been decided by the coordinate
bench in Dinesh Madhavlal Patel [TS-469-ITAT-2019(Ahd)] 2019-TIOL-
1556-ITAT-AHM dated 14th August, 2019.
6. In view of the above, Circular No. 17/2019 dated 08/08/2019 will apply to
all pending appeals. Therefore the precedent, it is held that the appeal is not
maintainable in the instant case as the tax effect is less than Rs. 50 lakhs.
Accordingly, it is held that appeal filed by the revenue is not maintainable.
We also hastened to add that certain times instances stated in para No. 10
of the CBDT Circular No. 3/2018 dated 11.07.2018 is not discernable from
the assessment and appellate orders, therefore, in such cases, we also give
liberty to revenue that if such instances comes to their notice than, revenue
may file miscellaneous application with such evidences.
7. In the result, appeals filed by the department are dismissed.
Order pronounced in the open court on 18/11/2019.
-Sd/- -Sd/-
(SUCHITRA KAMBLE) (PRASHANT MAHARISHI)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 18/11/2019
A K Keot
Copy forwarded to
1. Applicant
2. Respondent
3. CIT
4. CIT (A)
5. DR:ITAT
ASSISTANT REGISTRAR
ITAT, New Delhi
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Date of dictation
Date on which the typed draft is placed before the
dictating member
Date on which the typed draft is placed before the other
member
Date on which the approved draft comes to the Sr. PS/
PS
Date on which the fair order is placed before the
dictating member for pronouncement
Date on which the fair order comes back to the Sr. PS/
PS
Date on which the final order is uploaded on the website
of ITAT
date on which the file goes to the Bench Clerk
Date on which the file goes to the Head Clerk
The date on which the file goes to the Assistant
Registrar for signature on the order
Date of dispatch of the order
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