2015 (12) TMI 1748 - AT - Income Tax

Maintainability of appeal - monetary limit - Held that - Since the tax demand in dispute in each of these departmental appeals does not exceed the limit of ₹ 10 lacs as set out by CBDT, such appeals are not maintainable. Accordingly, the ld. DRs agree that these appeals of the Department may be treated as not pressed/withdrawn and dismissed in view of the CBDT Circular. Apropos COs, we may mention that in terms of sec 253(4) of the I.T. Act, the right thereof depends on the survival of corresponding revenue appeal. Since all these revenue appeals are withdrawn / not pressed and are consequently infructuous and do not survive; as a necessary consequence the corresponding COs will also stand dismissed as not maintainable.

Summary

Issues:
Appeals by Revenue against CIT(A) orders for different assessment years not exceeding Rs. 10 lacs - Applicability of CBDT Circular No.21 of 2015 - Dismissal of appeals and cross objections.

Analysis:
The judgment by the Appellate Tribunal ITAT Jaipur involved multiple appeals by the Revenue against orders of the ld. CIT(A)s for different assessment years, where the demand/tax effect did not exceed Rs. 10 lacs. The CBDT Circular No.21 of 2015 dated 10.12.2015, issued under Sec. 268A(1) of the I.T. Act, instructed that departmental appeals should not be filed before ITAT in such cases. The Circular also applied to pending appeals. The Tribunal observed that the demands in dispute in the Revenue appeals did not exceed the limit set by the CBDT. As a result, the appeals were not maintainable, and the departmental representatives agreed to treat them as not pressed or withdrawn, leading to their dismissal based on the Circular.

Regarding the Cross Objections (COs), the Tribunal noted that under Sec 253(4) of the I.T. Act, the right to COs depended on the survival of corresponding revenue appeals. Since the Revenue appeals were either withdrawn or not pressed, rendering them infructuous, the COs were also deemed not maintainable and thus stood dismissed. Consequently, all the appeals by the Revenue and the COs were dismissed as per the Tribunal's findings and the CBDT Circular.

In conclusion, the Tribunal dismissed all the listed appeals by the Revenue and the corresponding COs due to the non-applicability of the appeals where the demand/tax effect did not exceed Rs. 10 lacs, in accordance with the CBDT Circular No.21 of 2015. The judgment highlighted the importance of complying with the Circular's directives and the consequences of non-adherence to the prescribed limits set by the CBDT, leading to the dismissal of the appeals and cross objections in question.