2018 (8) TMI 1877 - AT - Income Tax

Maintainability of appeal - low tax effect - HELD THAT - Keeping in view the CBDT Circular No. 3 of 2018 dated 11.07.2018 and also the provisions of Section 268A of Income Tax Act 1961 we are of the view that the Revenue should have withdrawn the instant appeals filed before the Tribunal. Accordingly all the appeals of the Revenue are dismissed.

Summary

Issues:
16 appeals by Revenue from orders of CIT(A) involving tax effect < ?20,00,000, cross objections by assessees.

Analysis:
The judgment pertains to 16 appeals by the Revenue stemming from separate orders by the CIT(A) concerning various assessees, with some assessees also filing cross objections supporting the CIT(A) orders. The Tribunal noted that the tax effect in these appeals is less than ?20,00,000, falling within the purview of Circular No. 3/2018 by CBDT and Section 268A of the Income Tax Act, 1961. The Department, represented by the ld. D.R., did not contest the fact that the tax effect was below the stipulated limit. Section 268A, inserted by the Finance Act, 2008 with retrospective effect, empowers the Board to set monetary limits for not filing appeals, which are binding on income-tax authorities. The CBDT's Circular No. 3 of 2018 revised the monetary limit to ?20,00,000 for not filing appeals before the Tribunal, applicable even to pending appeals. The Circular instructed the Department to withdraw appeals where the tax effect is below ?20,00,000. Consequently, the Tribunal held that the Revenue should have withdrawn the appeals in line with the Circular and Section 268A, leading to the dismissal of all Revenue appeals.

The judgment further emphasized that since the cross objections by the assessees aligned with the CIT(A) orders, they were rendered infructuous and dismissed. Ultimately, all Revenue appeals and assessees' cross objections were dismissed by the Tribunal. The order was pronounced openly on 10/08/2018, bringing a conclusion to the legal proceedings in this matter.