2016 (1) TMI 1317 - AT - Income Tax

Monetary limit - maintainability of appeal - CBDT Circular No. 21 of 2015 dated 10.12.2015 with retrospective effect, revising the monetary limit to ₹ 10,00,000/- for not filing appeals before the Tribunal - Held that - From para 10 of the above Circular it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT wherein tax effect is less than ₹ 10,00,000/-. Going by the prescription of the aforenoted Circular, we are of the view that the Revenue should have either not filed the present appeals before the Tribunal or withdrawn the same as the tax effect in these appeals is admittedly less than the prescribed limit for not filing the appeals. Ex conseqeunti we dismiss the instant appeals without going into merits of these cases.

Summary

Issues Involved:
Appeals by Revenue and Cross Objection by Assessee regarding orders passed by CIT(A) for assessment years 2009-10, 2010-11, and 2004-05.

Analysis:

1. Issue of Monetary Limit for Filing Appeals:
During the hearing, the Assessee's representative referred to Circular No. 21 of 2015 issued by CBDT with retrospective effect, revising the monetary limit to Rs. 10,00,000 for not filing appeals before the Tribunal. The tax effect in the Revenue's appeals was below this limit. The Department's representative did not dispute this fact. The Circular applies to pending appeals as well, directing the Department to withdraw appeals where the tax effect is less than Rs. 10,00,000. The Tribunal concluded that the Revenue should not have filed these appeals or should have withdrawn them due to the tax effect being below the prescribed limit. Consequently, the Tribunal dismissed the appeals without delving into their merits.

2. Cross Objection Dismissal:
The Cross Objection filed by the Assessee was not pressed by their representative during the proceedings. As a result, the Tribunal dismissed the Cross Objection.

3. Final Decision:
In conclusion, the Tribunal dismissed the appeals of the Revenue and the Cross Objection of the Assessee. The order was pronounced in an open court on 28.01.2016.

This judgment highlights the importance of adhering to monetary limits for filing appeals before the Tribunal as prescribed by CBDT Circulars. The Tribunal emphasized the need for the Revenue to comply with such limits and not pursue appeals where the tax effect falls below the specified threshold. The dismissal of the appeals and Cross Objection underscores the significance of procedural compliance in tax matters and the consequences of failing to meet the prescribed criteria for pursuing legal remedies.