2018 (8) TMI 1864 - AT - Income Tax

Maintainability of appeal - monetary limit - HELD THAT - The tax effect pertaining to the amount disputed by the Revenue is less than the monetary limit of ₹ 20 lakh fixed by the CBDT in Circular No. 03/2018, dated 11/07/2018, which is in supersession of its Circular No. 21/2015 dated 10/12/2015, in relation to filing of appeals before the Income Tax Appellate Tribunal. Taking into consideration the above, and also the fact that the CBDT Circular under reference applies retrospectively even to pending appeals, we hold that the above listed appeals filed by the Revenue are not maintainable and liable to be dismissed in limine.

Summary

Issues:
Appeals against orders passed by Commissioner of Income Tax (Appeals) for respective Assessment Years with tax effect less than ?20 lakh as per CBDT Circular.

Analysis:

1. Issue: Tax Effect Limit for Filing Appeals
- The judgment pertains to multiple appeals filed by the Revenue against orders passed by the Commissioner of Income Tax (Appeals) for various Assessment Years. The key point of contention is that the tax effect related to the disputed amounts in all these appeals is below the monetary limit of ?20 lakh set by the CBDT in Circular No. 03/2018. This Circular supersedes Circular No. 21/2015 and governs the filing of appeals before the Income Tax Appellate Tribunal. The Tribunal notes that the CBDT Circular applies retroactively, even to pending appeals. Consequently, the Tribunal holds that the Revenue's appeals do not meet the threshold for maintainability and are liable to be dismissed summarily.

2. Decision and Dismissal of Appeals
- As a result of the above analysis, the Tribunal dismisses all the listed appeals of the Revenue. The Registry is instructed to inform the concerned parties about this decision. The order is pronounced openly on 3rd August 2018. The judgment emphasizes the strict adherence to the monetary limit specified by the CBDT Circular for determining the eligibility of appeals, ultimately leading to the dismissal of the Revenue's appeals due to non-maintainability based on the tax effect criteria.

This judgment underscores the significance of compliance with CBDT Circulars in determining the admissibility of appeals based on the tax effect involved, ensuring a streamlined approach to the appellate process in income tax matters.