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 Religare Finvest Limited Vs. Deputy Commissioner Of Income Tax & Anr
  The Chartered Institute Of Taxation Vs. Institute Of Chartered Tax Advisers Of India Ltd.
 Dy. Commissioner of Income Tax, Central Circle-6, New Delhi. Vs. Sh. U.K. Bose, 1, Kapoorthala Complex, Aliganj, Lucknow (UP).
 M/s Radius Industries, S-57, F.I.E.E., Okhla Industrial Area, Phase-2, New Delhi Vs. Acit, Circle 28(1), New Delhi
 The Income Tax Officer, Ward-71(2), Room No.402, 4th Floor, D-Block, Civic Centre, New Delhi. Vs. Smt. Madhu Bala Gupta, D-5, Parwana Vihar, Sector-9, Rohini, New Delhi – 110 085.
 Late Manoj Kumar, Through Legal Heir Smt. Alka, RZ-C-1/76, Gali No.38, Mahavir Enclave-II, Palam, New Delhi–110059. Vs. The Income Tax Officer, Ward-44(5), E-2 Block, Civic Centre, New Delhi.
 The Income Tax Officer, Ward-58(2), New Delhi. Vs. Smt. Mahi Preet Kaur, B-24, Ganesh Nagar, Pandav Nagar, Delhi – 110 092.
 M/s. Gitanjali Promoters Pvt. Ltd., M-11, Middle Circle, Connaught Circus, New Delhi – 110 001. vs. The ACIT, Central Circle-23, E-2, ARA Centre, Jhandewalan Extension, New Delhi.
 The Bank of Tokyo-Mitsubishi UFJ Ltd., 5th Floor, Worldmark-2, Asset 8, Aerocity, NH-8, New Delhi-110037 Vs. Dy. C.I.T Circle-3(1)(1), International Taxation, New Delhi
 Satish Chand, S/o Sh. Baburam R/o Village Bali, Distt. Baghpat, Baghpat Vs. ITO Barauta
 Magan Behari Lal, S-89, Greater Kailash II, New Delhi-110048 Vs. DCIT, Circle-16(2), C.R. Building, I.P. Estate, New Delhi-110002

Income Tax Officer, Ward-10(2), New Delhi. Vs. M/s Glitz Builders Pvt. Ltd., M-11, Middle Circle, Connaught Place, New Delhi.
September, 06th 2019

Referred Sections:
Section 115WB(2) of the I.T. Act
Section 147 of the I.T. act,
Section 268A of the Income-tax Act, 1961.

Referred Cases / Judgments:
Ahmadabad vs. Dinesh Madhavlal Patelin (ITA No.- 1398/Ahd/2004
ITO vs. M/s P.L. & Sons Infrastructure (P) Ltd. and 6 other appeals
ITO vs. M/s BSA Homes Pvt. Ltd.
ACIT vs. Isham System (P) Ltd.
ACIT vs. M/s Majestic Properties.
ACIT vs. Prateek Buildtech India P. Ltd.

 

                                             ITA No.- 5793/Del/2016 and others.
                                              Glitz Builders & Promoters Pvt. Ltd.

        IN THE INCOME TAX APPELLATE TRIBUNAL
             (DELHI BENCH: `C': NEW DELHI)

   BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER
                      AND
SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER

                    ITA No:- 5793/Del/2016
                 (Assessment Year: 2011-12)
Income Tax Officer,                M/s Glitz Builders Pvt. Ltd.,
Ward-10(2),                    Vs. M-11, Middle Circle,
New Delhi.                         Connaught Place, New Delhi.
PAN No:     AABCG9331N
APPELLANT                          RESPONDENT

        Revenue By      :      Shri Janardan Das, Sr. DR
        Assessee By     :      Shri Ajay Bhagwani, CA



                    ITA No:- 5439/Del/2016
                 (Assessment Year: 2012-13)
Income Tax Officer,                Shri Hemant Pal Singh Gill,
Ward- 50(3),                   Vs. 35/4, 2nd Floor, Old Rajinder
New Delhi.                         Nagar,
                                   New Delhi.
PAN No:      AAEPG8200A
APPELLANT                          RESPONDENT

        Revenue By      :      Shri Janardan Das, Sr. DR
        Assessee By     :      None




                             Page 1 of 19
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                                             Glitz Builders & Promoters Pvt. Ltd.

                   ITA No:- 5800/Del/2016
                 (Assessment Year: 2008-09)
Asstt. Commissioner of Income     Shri Inder Mohan Thapar,
Tax,                          Vs. A-11, Anand Niketan,
Circle-33(1),                     New Delhi-110021.
New Delhi.
PAN No:       AAZPT6605P
APPELLANT                         RESPONDENT

            Revenue By : Shri Janardan Das, Sr. DR
            Assessee By : None



                   ITA No:- 5801/Del/2016
                 (Assessment Year: 2012-13)
DCIT,                             M/s     Gupta         Property
Circle 10(2),                 Vs. Developers Pvt. Ltd.,
New Delhi.                        Kothi No. 452, Sector-19,
                                  Dwarka, Delhi- 110087.
PAN No:       AABCG8850C
APPELLANT                         RESPONDENT

            Revenue By : Shri Janardan Das, Sr. DR
            Assessee By : None


                   ITA No:- 3696/Del/2016
                 (Assessment Year: 2006-07)
ACIT,                             Tata Teleservices Ltd.,
Circle 25(1),                 Vs. 2A, Old Ishwar Nagar,
New Delhi.                        Main Mathura Road,
                                  New Delhi.
PAN No:       AAACT2438A
APPELLANT                         RESPONDENT


                            Page 2 of 19
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                                                               Glitz Builders & Promoters Pvt. Ltd.

                   Revenue By :            Shri Janardan Das, Sr. DR
                   Assessee By :          Shri Sparsh Bhargava, Adv. and
                                          Ms. Ishita Farsaiya, Adv.

                      ITA No:- 3697/Del/2016
                    (Assessment Year: 2007-08)
   ACIT,                             Tata Teleservices Ltd.,
   Circle 25(1),                 Vs. 2A, Old Ishwar Nagar,
   New Delhi.                        Main Mathura Road,
                                     New Delhi.
   PAN No:       AAACT2438A
   APPELLANT                         RESPONDENT

                     Revenue By :           Shri Janardan Das, Sr. DR
                     Assessee By :          Shri Sparsh Bhargava, Adv. and
                                            Ms. Ishita Farsaiya, Adv

                            CONSOLIDATED ORDER

PER BENCH

(A)   The above captioned appeals by Revenue are taken up together for the sake of

convenience and brevity and these appeals are hereby disposed off through this

Consolidated Order; as in all these appeals the tax effect is less than the monetary limit

fixed by the Central Board of Direct Taxes ("CBDT", for short) in its Circular No.

17/2019 dated 08.08.2019. Grounds taken in these appeals of Revenue are as under:


        ITA No.- 5793/Del/2016


        "1.   Whether the Ld. CIT(A) has erred in facts and in law in holding that no
              addition can be made in the assessment completed u/s 153A of the
              Income Tax Act, 1961, if no incriminating documents was found.



                                         Page 3 of 19
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 2.    Whether on the facts and in the circumstances of the case, CIT(A) has
       erred both in facts and law in deleting the addition of Rs.
       1,27,44,100/- made by the Assessing Officer to the income of the
       assessee company."
 3.    The appellant craves leave, to add, alter or amend any ground of
       appeal raised above at the time of the hearing."



ITA No.- 5439/Del/2016


 "1.   The Ld. CIT(A) has erred in law and on facts in deleting the addition of
       Rs. 88,44,657/- made by the AO with regard to penalty / damages
       charged by Hero Honda.
 2.    The Ld. CIT(A) has erred in law and on facts in not considering that the
       damages /penalty are not allowable as per Income Tax Act,1961.
 3.    The Ld. CIT(A) has erred in law and in facts in not considering that the
       carrier trucks used by the assessee are insured and all the
       damages/penalty are to be borne by the insurance company not the
       assessee. The Ld. CIT(A) has even erred in not taking considering of
       the AO's remarks in his order that no proper reason have been put in
       place by the assessee during assessment proceedings.
 4.    Appellant craves right to add, delete, amend any ground at any time
       during the appellate proceedings.
       Certified that the copy of the order of Hon'ble CIT(A)-17, New Delhi in
       the above mentioned case was communicated on 01.09.2016.
       Limitation expires on 30/10/2016."



 ITA NO.- 5800/Del/2016


 1.     Whether on facts and circumstances of the case the Ld. CIT(A) is
        correct in deleting the penalty u/s 271(1)(c) of Rs. 34,85,759/- rightly
        imposed by the AO for the A.Y. 2008-09.
 2.     Whether on the facts and circumstances of the case the Ld. CIT(A) is
        correct in deleting the penalty u/s 271(1)(c) of Rs. 34,85,759/-
        ignoring the facts of the case that the original order was not set aside
        in toto but only on a limited issue.
 3.     Whether on the facts and circumstances of the case the Ld. CIT(A) is
        correct in deleting the penalty u/s 271(1)(c) of Rs. 34,85,759/-



                                  Page 4 of 19
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                                                      Glitz Builders & Promoters Pvt. Ltd.

      ignoring the fact that the addition as made in the original order which
      were not subject to direction issued u/s 263 of the Act.
4.    Whether on the facts and circumstances of the case the Ld. CIT(A) is
      correct in deleting the penalty u/s 271(1)(c) of Rs. 34,85,759/-
      ignoring the fact the Assessing Officer deciding the matter in
      consequence of the order u/s 263 of the Act did not have the
      jurisdiction to reexamine the addition made in the original order u/s
      143(3) / 153A and therefore did not have jurisdiction to
      reconsider/redecide on the initiation of penalty made in original
      assessment order u/s 143(3)/153A of the Act.
5.    Whether on the facts and circumstances of the case the Ld. CIT(A) is
      correct in deleting the penalty u/s 271(1)(c) of Rs. 34,85,759/-
      ignoring the fact the penalty so imposed by the AO is in consequence
      of the assessee's appeal dismissed by the Ld. CIT(A) which were filed
      against the original order and the same was not adjudicated by the
      assessee by filing second appeal."

     ITA NO.- 5801/Del/2016

 1. Whether on the facts and circumstances of the case & in law, the Ld.
    CIT(A) was correct in deleting the addition of Rs. 80,00,000/- on account
    of material consumed ignoring the fact that the assessee company failed
    to substantiate its claim of expenses during the course of assesseemnet
    proceedings.
 2. The appellant craves leave, to add, alter or amend any ground of appeal
    raised above at the time of hearing.


     ITA NO.- 3696/Del/2016


 1. On the facts and in the circumstances of the case in law, the Ld. CIT(A)
    has erred in quashing the reassessment proceedings initiated u/s 115WG
    of the IT Act thereby deleting addition of Rs. 1,04,74,439/- made by the
    AO on account of expenses under clause B section 115WB(2) of the I.T.
    Act without appreciating that the scheme of section 147 of the I.T. act,
    1961 cannot be extended to the proceedings u/s 115WG of the Act.

 2. The appellant craves, leave or reserving the right to amend, modify, alter,
    add or forego any ground(s) of appeal at any time before or during the
    hearing of this appeal."


     ITA No.- 3697/Del/2016

 1. On the facts and in the circumstances of the case in law, the Ld. CIT(A)
    has erred in quashing the reassessment proceedings initiated u/s 115WG


                                Page 5 of 19
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             of the IT Act thereby deleting addition of Rs. 77,84,163/- made by the AO
             on account of expenses under clause B section 115WB(2) of the I.T. Act
             without appreciating that the scheme of section 147 of the I.T. act, 1961
             cannot be extended to the proceedings u/s 115WG of the Act.

          2. The appellant craves, leave or reserving the right to amend, modify, alter,
             add or forego any ground(s) of appeal at any time before or during the
             hearing of this appeal."




(B)   At the outset, at the time of hearing before us, we referred to the recent CBDT

Circular No. 17/2019 dated 08.08.2019 in F.No. 279/Misc. 142/2007-ITJ (Pt.) wherein

minimum threshold limit of tax effect for filing of appeals by Revenue in Income Tax

Appellate Tribunal ("ITAT", for short) has been enhanced to Rs. 50,00,000/- by revising

the earlier CBDT Circular No. 3 of 2018, dated 11.07.2018. In view of the aforesaid

CBDT Circular No. 17/2019 dated 08.08.2019; these appeals filed by Revenue are not

maintainable and Revenue is required to withdraw / not press those appeals filed by

Revenue in which tax effect is below Rs. 50,00,000.                 The learned Authorized

Representatives (Chartered Accountants / Advocates) of the respective assessees in

these appeals contended that respective appeals filed by Revenue should be dismissed

having regard to aforesaid CBDT Circular dated 08.08.2019. Shri Janardan Das, the

learned Senior Departmental Representative ("Ld. Sr. DR", for short) representing

Revenue in all these appeals on the date of hearing, accepted, at the time of hearing of

these appeals, that the tax effect in the aforementioned appeals filed by Revenue is

below Rs. 50,00,000/- in each of these appeals. He did not oppose the contention of









                                         Page 6 of 19
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                                                              Glitz Builders & Promoters Pvt. Ltd.

the learned Authorized Representatives of the respective assessees that all these

appeals filed by Revenue should be dismissed.


(B.1) The aforesaid CBDT circular No. 17/2019 dated 08/08/2017 reads as under:

                              "Circular No. 17/2019

                                                 New Delhi. 8th August 2019

              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 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 IT matters           Monetary Limit (Rs.)

              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



                                        Page 7 of 19
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                                                                  Glitz Builders & Promoters Pvt. Ltd.

                  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 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.
                  7. Hindi version will follow. "


(B.1.1)      We have noted that vide Circular No. 3/2018 dated 11th July, 2018 issued by

CBDT it was not only directed that the Department shall not file appeal before the

Tribunal in cases where the tax effect does not exceed the monetary limit of Rs.20 lakh;

but it was also directed that this instruction will apply retrospectively to pending

appeals.      It was further directed in aforesaid CBDT Circular No. 3/2018 dated

11.07.2018, that the pending appeals below the specified tax limit may be

withdrawn/not pressed by the Department. Relevant Portion of the aforesaid Circular

No. 3/2018 dated 11.07.2018 is as under:



           "The Circular will apply to SLPs/appeals/cross objections /references to be filed
           henceforth in Hon'ble Supreme Court/Tribunal and it shall also apply
           retrospectively to pending SLPs/appeals/cross objections/references. Pending




                                            Page 8 of 19
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        appeals below the specified tax limits in para 3 above may be withdrawn/not
        pressed."



(B.1.2) Now, vide its aforesaid recent Circular No. 17/2019 Dated 08.08.2019, CBDT

has amended its aforesaid earlier Circular No.3/2018 dated 11.7.2018; and it has been

directed that monetary limit for filing the Departmental appeal in Income Tax Cases be

enhanced further and accordingly, the monetary limit for filing the appeal before the

Appellate Tribunal have been enhanced to Rs.50 lakhs through amendment of

paragraph 3 of aforesaid Circular No. 3/2018 dated 11.07.2018. Aforesaid Circular

No.17/2019 Dated 08.08.2019 has been issued to revise / enhance the monetary limit

of tax effect to Rs. 50,00,000/- as compared to the monetary limit of Rs. 20,00,000/-

vide CBDT's earlier Circular No. 3/2018 dated 11.7.2018; without, however, in any way

amending any other material part of the aforesaid CBDT Circular dated 11.07.2018.

More particularly, there is nothing in the aforesaid recent CBDT Circular No. 17/2019

dated 08.08.2019 to infer that direction contained in aforesaid earlier CBDT Circular No.

3 of 2018 dated 11.07.2018 to withdrawn / not press existing appeals (below specified

monetary limit of tax effect) already filed by Revenue in ITAT; does not continue to be

applicable. Therefore, all the provisions of aforesaid earlier Circular No. 3/2018 dated

11.7.2018 shall apply mutatis mutandis to recent aforesaid CBDT Circular No. 17/2019

dated 08.08.2019 also. Accordingly, the direction in aforesaid earlier Circular dated

11.07.2018 to withdraw / not press Revenue's appeal with tax effect below Rs.

20,00,000/-; in view of recent aforesaid Circular dated 08.08.2019; is now to be read as




                                       Page 9 of 19
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direction to withdraw /not press Revenue's appeal with tax effect below revised /

enhanced limit of Rs. 50,00,000/-.



(B.2) For our aforesaid view expressed in the foregoing paragraph (B.1.2) of this

order; we take strength from a recent precedent in the case of Income Tax Officer,

Ward 3(2), Ahmadabad vs. Dinesh Madhavlal Patelin (ITA No.- 1398/Ahd/2004 for

Assessment Year 1998-99), and 627 others; in which, vide order dated 14.08.2019, of

`A' Bench of Income Tax Appellate Tribunal, Ahmadabad [ Coram: Justice P P Bhatt,

President, and Sri Pramod Kumar, Vice President] it was held, at paragraph 7 of the

aforesaid order dated 14/08/2019, that relaxation in monetary limits for departmental

appeals, vide CBDT circular dated 8th August 2019 (supra) shall be applicable to the

pending appeals in addition to the appeals to be filed henceforth. This decision has

already been reported in 2019-TIOL-1556-ITAT-AHM, and the relevant portion of the

aforesaid order dated 14.08.2019 of `A' Bench, ITAT, Ahmadabad: containing detailed

discussion of the issue, is reproduced as under:

       "1.      These 628 appeals and Cos pertain to the appeals are filed by various Assessing
       Officer, all these appeals call into question correctness of the relief granted to the taxpayers by
       the Commissioner of Income Tax (Appeals) and, most importantly, the tax effect involved in all
       these appeals does not exceed Rs. 50,00,000 in each of these appeals. The cross objections
       taken up for hearing are only such cross objections as emanate from these appeals and are
       broadly in support of the orders passed by the Commissioner (Appeals). In these cases, in the
       light of the discussions with the Principal Chief Commissioner of Income Tax (Gujarat) and
       representatives of the Ahmedabad ITAT Bar Association, individual notices are dispensed with;
       notices of hearing are given only through the notice board.
       2.        It is in this backdrop that we are pleased to take note of a very pragmatic and
       taxpayer friendly policy decision by the Government of India for reducing the income tax
       litigation. Vide CBDT circular dated 8th August, 2019, the income tax department has further
       liberalized its policy for not filing appeals against the decisions of the appellate authorities in
       favour of the taxpayers, wherein tax involved is below certain threshold limits, and announced
       its policy decision not to file, or press, the appeals, before this Tribunal, against the appellate
       orders favourable to the assessee in the cases in which overall tax effect, excluding interest-




                                               Page 10 of 19
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except when interest itself is in dispute, is Rs 50,00,000 or less. What it means, in plain words,
is that when a Commissioner (Appeals) gives the taxpayer tax relief of upto Rs 50 lakhs in an
appeal in an assessment year, the matter ends there and the relief so granted by the
Commissioner (Appeals) cannot be challenged before this Tribunal, that when this Tribunal
gives the taxpayer relief of upto Rs 1 crore in an appeal in an assessment year, the matter
ends there and the relief so granted by the Tribunal cannot be challenged before the Hon'ble
High Court, and that when Hon'ble High Court gives relief of upto Rs 2 crore to the taxpayer in
an appeal in an assessment year, that relief cannot be challenged before Hon'ble Supreme
Court. These monetary threshold limits for filing of appeals by the income tax authorities do
not take into account interest and other corollaries of the tax demands being confirmed such
as penalties, except when a penalty itself is subject matter of litigation, and prosecutions. The
enhancement of these monetary limits is at an unprecedented scale. The monetary limit for
appeals before this Tribunal, which was Rs 3,00,000 till 10th July 2014, has been in effect
enhanced to almost 1,700% in the last five years. This substantial relaxation is certainly a
huge step which signifies trust reposed by the Government of India in the decisions of the
appellate forums, and substantially cuts down time taken in the finality of the appellate
process. It is indeed heartening to note that in one stroke, the Government has not only
prevented, but has. in effect, set the stage for withdrawal of thousands of appeals before this
Tribunal and before Hon'ble Courts above. In an environment in which retrospectivity was
attached only to the taxation and not to tax reliefs or concessions, such an approach is a
pleasant departure from legacy practices.
3.       In view of the above factual background and the generous concession by this
benevolent CBDT circular, all these appeals must be dismissed as withdrawn and the related
cross objections must be dismissed as infructuous. There is. however, a small issue that we
must deal with.
4.      Smt Aparna Agarwal, learned Departmental Representative, however, has a point to
make. She points out that the circular dated 8th August 2019 is not clearly retrospective
inasmuch as it specifically states in para 4 that " ( t ) h e s ai d m o d i fi c at i o n s s h al l
c o me i n t o e ff e c t fro m t h e d at e o f i s s u e o f t h i s C i rc u l a r" . It is thus pointed
out that this sentence gives an impression that is only after the date of the said circular that
the departmental appeals will not be filed in the cases within the specified tax effect limits. We
are urged to bear in mind the impact of this observation while giving effect to the circular
dated 8th August, 2019. She. however, hastens to add that she is yet to have any specific
instructions on the issue and she leaves it for the bench to take the appropriate call. Learned
representatives appearing for the taxpayers vehemently oppose the suggestion implicit in her
submissions. All of them are unanimous in their argument that the circular must be held to
have retrospective application and must equally apply to the pending appeals as well Shri J P
Shah. Senior Advocate, points out that the circular dated 8'h August 2019 i^ not a standalone
circular and it is required to be read with the old circular no. 3 ot 2018 which is what it seeks
to modify. This circular, according to the learned counsel, only enhances the monetary limits
and gives further relaxation. He urges us not to read the circular in a manner so as to nullify
the underlying approach and object of reducing litigation. Shri Soparkar, learned Senior
Advocate, submits that all that the present circular does is to modify the monetary limits and
nothing more, and, therefore, it cannot be treated to follow any other approach other than the
approach followed in the old circular. The old circular, beyond any dispute or controversy,
categorically applied to the pending appeals as on the date of issuance of circular. Shri Tushar
Hemani, learned Senior Advocate, points out that the circular dated 8th August 2019 only gives
further relief not only in terms of the monetary limits but also in terms of the manner in which
the application of circular to orders dealing with more than one year is to made. Shri S N
Divetia, learned counsel for the assessee, submits that unlike in the cases of earlier CBDT
circulars, which used to be in supersession of earlier circulars on the issues, the circular dated
8th August 2019 only modifies the earlier circular which, inter alia, provided for its retrospective
application. Our attention is invited to some judicial precedents in support of the contention
that the benevolent circular, such as the one in question, is to be given effect in respect of the




                                           Page 11 of 19
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pending appeals as well. Ms Urvashi Shodhan. learned counsel for the assessee, points outs
that its plainly contrary to the scheme of the litigation policy of the Government of India to
give this circular only prospective effect. Shri S K Sadhwani, learned counsel for the assessee,
invites our attention to the letter dated 16th July 2018 issued by Member CBDT to the all the
Principal Chief Commissioners of Income Tax, in the context of circular dated 11th July 2018
that the present circular seeks to modify, seeking report on withdrawal of the appeals covered
by the circular. He then points out tMt it is the old circular is still alive today and the only
change is with respect to the monetary limits. In all fairness, therefore, the same approach
regarding withdrawal of pending appeals must be followed for this circular as well. On the
same lines, arguments are advanced by the learned representatives which, for the sake of
brevity and to avoid repetition, we are not referring to in more specific details. In brief
rejoinder, learned Departmental Representative graciously leaves the matter to us.
5. Having considered the rival submissions and having perused the material on record, we do
not have slightest of hesitation in holding that the concession extended by the CBDT not only
applies to the appeals to be filed in future but it is also equally applicable to the appeals
pending for disposal as on now. Our line of reasoning is this. The circular dated 8,h August
2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular no 3 of
2018 (and subsequent amendment thereto), and all it does is to replace
paragraph nos. 3 and 5 of the said circular. This is evident from the following extracts from the
circular dated 8th August 2019:
       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.N o. Ap p ea ls/ SLPs in I nc o me - ta x ma tters M o n e tar y
                Lim i t ( Rs.)
            / Be f or e Ap pe l l a te T r i b u n a l          5 0 ,0 0 ,0 0 0
            2 Be f or e Hi g h C ou r t                      1 ,0 0 ,0 0 ,0 0 0
            3 Be f or e    S u pr e m e C ou r t             2 ,0 0 ,0 0 ,0 0 0

       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



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                  the monetary limit specified in para 3. No appeal shall
                  he 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 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.


      6. Clearly, all other portions of the circular no. 3 of 2018 (supra) have remained intact. The
         portion which has remained intact includes paragraph 13 of the aforesaid circular which is as
         follows:

                    13. This Circular will apply to SLPs/ appeals/ cross
                    objections/ 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 pare 3 above may be
                    withdrawn/ not pressed.


       7.      In view of the above discussions, we hereby hold that the relaxation in monetary limits
       for departmental appeals, vide CBDT circular dated 8th August 2019 (supra) shall be applicable
       to the pending appeals in addition to the appeals to be filed henceforth."








(B.2.1)    Moreover, in the following precedents, Co-ordinate Benches of Income Tax

Appellate Tribunal, Delhi; have already taken the view that the aforesaid CBDT Circular

no. 17/2019 dated 08.08.2019 shall also apply retrospectively to pending appeals:




                                              Page 13 of 19
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       (i)     Order dated 21.08.2019 of "A" Bench of ITAT, Delhi in ITA No. ­

       5416/Del/2015 and 6 others for A.Y. 2011-12, in the case of ITO vs. M/s

       P.L. & Sons Infrastructure (P) Ltd. and 6 other appeals

       (ii)    Order dtd. 19/08/2019 of "B" Bench of ITAT, Delhi, in ITA No.

       4497/Del/2016 for A.Y. 2011-12 in the case of ITO vs. M/s BSA Homes Pvt.

       Ltd.

       (iii)   Order dtd 19/08/2019 of "C" Bench of ITAT, Delhi, in ITA No.­

       4276/Del/2016, for A.Y. 2012-13 in the case of ACIT vs. Isham System (P)

       Ltd.

        (iv)   Order dtd 19.08.2019 of "E" Bench of ITAT, Delhi in ITA No.-

       5230/Del/2011 for A.Y. 2004-05 Delhi in the case of ACIT vs. M/s Majestic

       Properties.

       (v)     Order dtd. 19/08/2019 of "F" Bench of ITAT, Delhi in ITA Nos.­

       5136 & 5137/Del/2016 for A.Y. 2009-10 & 2010-11 in the case of ACIT vs.

       Prateek Buildtech India P. Ltd.

       (vi)    Order dtd 21/08/2019 of "D" Bench, of ITAT, Delhi in ITA Nos.-

       5628/Del/2016 and 1481 & 5961/Del/2016 for A.Y. 2007-08 and 2006-07

       & 2013-14 in the case of ITO vs. Jain Steel Corporation and ACIT vs. Jindal

       Poly Films Ltd.



(B.2.2) A perusal of the aforesaid recent CBDT Circular dated 08.08.2019 shows that

minimum threshold limit of tax effect for filing of Special Leave Petition (`SLP' for short)


                                         Page 14 of 19
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in Hon'ble Supreme Court has also been enhanced to Rs. 2,00,000/-. Vide separate

orders, each dated 16.08.2019, Hon'ble Supreme Court has already dismissed the

following SLPs filed by Revenue earlier; since the tax effect involved in each of these

cases was less than Rs. 2,00,000/-:

      (i)     Special Leave Petition (Civil) Diary 25086/2019 in the case of CIT v/s
      M/s Hongkong and Shanghai Banking Corporation Ltd. (Arising out of
      impugned final judgment and order dated 06-02-2019 in ITA No. 1650/2016
      passed by the High Court of Judicature at Bombay)


      (ii)    Special Leave Petition (Civil) Dairy No. 26373/2019 in the case of DCIT
      vs. EB Holding Company Ltd. (Arising out of impugned final judgment and
      order dated 25-01-2019 in WP No. 3642/2018 passed by the High Court of
      Judicature at Bombay)


      (iii)   Special Leave Petition (Civil) Diary No. 21497/2019 in the case of Pr.
      CIT vs. Keshav Power Ltd. (Arising out of impugned final judgment and order
      dated 07-09-2018 in ITA No. 277/2018 passed by the High Court of Delhi at
      New Delhi)


      (iv)    Special Leave Petition (Civil) Diary No. 25076/2019 in the case of Pr.
      CIT vs. Meenakshi Modi. (Arising out of impugned final judgment and order
      dated 24-01-2019 in DBITA No. 156/2018 passed by the High Court of
      Judicature for Rajasthan at Jodhpur)


(B.2.3)       Moreover, vide F.No. 279/Misc/M-93/2018-ITJ, dated 20th August, 2019;

clarification has been issued by CBDT that revised monetary Limits mentioned in




                                      Page 15 of 19
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Circular No. 17/2019 is applicable to all pending SLPs / appeals / cross objections /

references. It reads as under:

                            "F. No. 279/Misc/M-93/2018-ITJ
                                Government of India
                                 Ministry of Finance
                             Department of Revenue
                            Central Board of Direct Taxes
                                    **********

                                           Room No. 12, 5th Floor, Jeevanvihar Building,
                                           Parliament Street, New Delhi.
                                           Dated the 20th August, 2019.
      To,
             All Pr. Chief Commissioners of Income Tax

      Sub: Withdrawal of Pending cases after Enhancement of Monetary Limits matter reg;
      Ref. Circular No. 17/2019 dated 8th August, 2019 (F.No. 279/Misc. 142/2007-
          ITJ(Pt) and Circular No. 3 of 2018.

      Sir,
              Kindly refer to the aforesaid subject. Representations have been received from
      the field, seeking clarifications on applicability of Circular 17 of 2019 on pending
      appeals.
      2.      In this regard, it is stated that Circular 17 of 2019 relaxes the monetary limits
      as mentioned in the table there in and all other paras, except para 5 of Circular 3,
      relating to composite orders shall be applicable in toto.

      3.     Therefore, it is clear that the revised monetary limits so mentioned in circular
      17/2019 is applicable, to all pending SLPs/appeals/cross objections/references. All
      such pending appeals within the revised limits shall be withdrawn on or before
      31.10.2019 and a fortnightly report as to progress on withdrawals should be submitted
      to Board, by 15th & 31st of every month.

      4.     This issues with the approval of the Chairman, CBDT.

      Encl. as above
                                                                  Yours faithfully,

                                                                         Sd/-
                                                                  (AbhishekGautam)
                                                                  DCIT (OSD) (ITJ-I), CBDT
                                                                  Tele: 011-23741832




                                         Page 16 of 19
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      Copy to: 1. Pr. DCIT (L&R) for kind information & necessary action
               2. Database Cell for uploading on irsofficeronline."


(B.3) In view of the foregoing discussion, and respectfully following the precedents

mentioned in foregoing paragraphs (B.2) , (B.2.1) and (B.2.2) of this order; and, in

view of the aforesaid clarification issued by CBDT and mentioned in foregoing

paragraph (B.2.3) of this order; we hold that the revised / enhanced minimum

threshold limit of tax effect of Rs. 50,00,000/- vide aforesaid recent CBDT

Circular No. 17/2019 dated 08.08.2019 is applicable not only for appeals to

be filed by Revenue in future; but also for appeals already filed by Revenue in

ITAT. Accordingly, in view of the aforesaid recent CBDT Circular No. 17/2019

dated 08/08/2019; the direction in aforesaid earlier Circular dated

11.07.2018 to withdraw /not press Revenue's appeal with tax effect below

Rs. 20,00,000/-; is now to be read as direction to withdraw / not press

Revenue's appeal with tax effect below revised / enhanced limit of Rs.

50,00,000/-.     By necessary implication, therefore, all existing appeals in

ITAT, having tax effect below the revised / enhanced limit of Rs. 50,00,000/-

, are to be treated as withdrawn / not pressed; and are, not maintainable.

We also hold, in view of the foregoing, that the relaxation in monetary limits for

filing of appeals by Revenue in ITAT, vide aforesaid CBDT Circular dated

08.08.2019 shall be applicable also to the pending appeals in ITAT already

filed by Revenue. It is well settled that CBDT Circulars and Instructions, which

are beneficial for assessee, are binding on the authorities below. Accordingly,



                                        Page 17 of 19
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these appeals filed by Revenue are treated as withdrawn / not pressed by Revenue;

and held to be not maintainable having regard to the aforesaid CBDT Circular dated

08.08.2019. We clarify that Revenue will be at liberty to approach Income Tax

Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking partial recall

of this order and, for restoration of these appeal(s), if any, in which it is

found that appeal(s) of Revenue is / are not covered by aforesaid CBDT

Circular dated 08.08.2019.



(C)    In the result, all these appeals of Revenue are held to be not maintainable, and

treated as withdrawn / not pressed; and are, accordingly, dismissed. Our decision was

orally pronounced in the Open Court after conclusion of hearing on the date of hearing.

Now this detailed written order is pronounced in Open Court on      05 /9/2019




          Sd/-                                              Sd/-
    (AMIT SHUKLA)                                     (ANADEE NATH MISSHRA)
   JUDICIAL MEMBER                                     ACCOUNTANT MEMBER

Dated:       05 .09.2019
Pooja/-

Copy   forwarded to:
  1.   Appellant
  2.   Respondent
  3.   CIT
  4.   CIT(Appeals)
  5.   DR: ITAT




                                      Page 18 of 19
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                                                   ASSISTANT REGISTRAR
                                                         ITAT NEW DELHI




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




                                Page 19 of 19

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