2016 (1) TMI 1189 - AT - Income Tax

Maintainability of appeal - monetary limits - Held that - The Learned Departmental Representative fairly admitted that the Revenue effect in this appeal is less than the prescribed limit in para-3 of the above circular No.21/2015 dated 10th December, 2015, bearing F.No.279/- Misc.142/2007-ITI(Pt) issued by the CBDT. Having regard to the circumstances of the case, we dismiss the appeal of the Revenue as withdrawn/not pressed, as pronounced in the open court.

Summary

Issues: Jurisdiction of the ITAT based on monetary limits for filing appeals by the Revenue.

In this judgment by the Appellate Tribunal ITAT Bangalore, the issue revolves around the monetary limits set by the CBDT for filing appeals by the Revenue before the Income Tax Appellate Tribunal. The CBDT issued a circular specifying that appeals should not be pursued if the tax effect is below the prescribed limit, in this case, Rs. 10 lakhs. The Tribunal highlighted the importance of calculating the tax effect separately for each assessment year and emphasized that appeals can only be filed for years where the tax effect exceeds the specified limit. An exception was made for combined orders, allowing appeals for years with tax effects below the limit if one year exceeds it. The Tribunal clarified that dismissing an appeal for lack of tax effect does not prevent the Revenue from filing appeals for other years. The judgment underscores the significance of the circular in reducing unnecessary litigation and ensuring proper assessment of tax effects.

The Tribunal referenced Section 268A of the Income Tax Act, 1961, which empowers the Board to set monetary limits for filing appeals. In this case, the circular issued by the CBDT on December 10, 2015, was deemed applicable to all pending appeals. The Tribunal, based on the circular, concluded that the Revenue's appeal should not have been pursued as the tax effect was below the prescribed limit. The Departmental Representative acknowledged this fact, leading to the appeal being dismissed as withdrawn/not pressed. The Tribunal granted the Revenue the option to submit an application if the case fell under any exceptions outlined in the circular, providing a recourse for further review if necessary.

Ultimately, the Tribunal dismissed the appeal filed by the Revenue, emphasizing compliance with the monetary limits set by the CBDT. The judgment highlights the importance of adhering to the circular's directives to streamline the appeals process and avoid unnecessary litigation. The decision was pronounced in open court on January 6, 2016, concluding the matter and affirming the Tribunal's stance on the jurisdiction based on monetary limits for filing appeals by the Revenue.