IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: `B', NEW DELHI
BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER
AND
HRI K.N.CHARY, JUDICIAL MEMBER
ITA No.2739/Del/2013
Assessment Year: 2007-08
DCIT, Vs. Dynasty Construction (P)
Cent. Central -8, Ltd., M-11, Middle Circle
New Delhi Connaught Place,
New Delhi
PAN :AAACD9800C
(Appellant) (Respondent)
Appellant by Ms. Rachna Singh, CIT(DR)
Respondent by Shri Ajay Bhagwani, CA
Date of hearing 04.09.2019
Date of pronouncement 07.11.2019
ORDER
PER O.P. KANT, AM:
The present appeal by the Revenue is directed against order
dated 17.12.2012, passed by learned Commissioner of Income
Tax (Appeals)-XXXIII, New Delhi, for assessment year 2007-08.
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.
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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 appeals in income-tax cases be enhanced further
through amendment in Para 3 of the Circular mentioned
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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 Monetary Limit (Rs.)
tax matters
1. Before Appellate 50,00,000/-
Tribunal
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 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."
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
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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 07th November, 2019.
Sd/- Sd/-
(K.N.CHARY) (O.P. KANT)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 07th November, 2019.
*BR* (D.T.D.)
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar, ITAT, New Delhi
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ITA No.2739/Del/2013
Sl. No. Particulars Date
1. Date of dictation (Order drafted through Dragon 5.11.2019
software):
2. Date on which the draft of order is placed before
the Dictating Member:
3. Date on which the draft of order is placed before
the other Member:
4. Date on which the approved draft of order comes
to the Sr. PS/PS:
5. Date of which the fair order is placed before the
Dictating Member for pronouncement:
6. Date on which the final order received after having
been singed/pronounced by the Members:
7. Date on which the final order is uploaded on the
website of ITAT:
8. Date on which the file goes to the Bench Clerk
9. Date on which files goes to the Head Clerk:
10. Date on which file goes to the Assistant Registrar
for signature on the order:
11. Date of dispatch of order:
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