Referred Sections: section 268A of the Income-tax Act, 1961.”
INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "E": NEW DELHI
BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
ITA No. 5687/Del/2015
(Assessment Year: 2011-12)
DCIT, Vs. Indirapuram Habitat Centre Pvt. Ltd,
Central Circle-18, 702-704, D-Mall, Netaji Subhash
New Delhi Place, Pitampura,
New Delhi
PAN: AAGCS4747R
(Appellant) (Respondent)
Revenue by : Ms Parmita M. Biswas, CIT DR
Ms Rinku Singh, Sr. DR
Assessee by : Shri Ved Jain, Adv
Shri Ashish Goel, CA
ITA No. 2588/Del/2016
(Assessment Year: 2011-12)
ACIT, Vs. M/s. Grant Thornton India LLP
Circle-52(1), (formerly Grant Thornton), L-41,
New Delhi Connaught Circus, New Delhi
PAN: AACFG9740K
(Appellant) (Respondent)
Revenue by : Ms. Rinku Singh, Sr. DR
Assessee by : Ms. Sweety Kothari, CA
ITA No. 4432 & 4433/Del/2016
(Assessment Year: 2005-06 & 2007-08)
ACIT, Vs. Magnum International Ltd,
Central Circle-20, (formerly known as Magnum Steel
New Delhi and Power Ltd),
312, Essel House, 10, Asaf Ali Road,
New Delhi
PAN: AAACM8549B
(Appellant) (Respondent)
Revenue by : Ms. Parmita M. Biswas, CIT DR
Assessee by : Shri Rajiv Saxena, Adv
Ms. Sumangla Saxena, Adv
Shri Shyam Sunder, AR
Date of Hearing 22/08/2019
Date of pronouncement 26/08/2019
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ORDER
PER BENCH
1. These are the appeals filed by Department against the order of respective the ld
CIT(A) for respective assessment Years.
2. At the outset of the hearing itself, the ld. ARs 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 rival 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 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
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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 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 .
5. 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.
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6. In the result, appeal filed by the department are dismissed.
Order pronounced in the open court on 26/08/2019.
-Sd/- -Sd/-
(KULDIP SINGH) (PRASHANT MAHARISHI)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 26/08/2019
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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