2018 (9) TMI 1953 - AT - Income Tax

Maintainability of appeal - low tax effect - HELD THAT - We find that the present case does not fall within the exceptions clause and the tax demand is less than ₹ 20 lacs. Therefore, the present appeals are not maintainable as per recent Circular No.3/2018 Dated 11.07.2018 F.No.279/Misc.142/2007-ITJ (Pt) and hence the same are dismissed. However, we may make it clear that the Revenue is at liberty to approach the Tribunal for recalling this order, if it comes to the notice of the Assessing Officer that the tax effect is more than the monetary limit prescribed under Circular or Revenue s case falls within the ambit of the exceptions provided in the Circular. - Decided against revenue.

Summary

Issues:
- Appeal filed by Revenue against the order of CIT(A) for multiple Assessment Years (A.Ys).
- Monetary limit for filing appeals before Tribunal revised to &8377; 20 lakhs by CBDT Circular.
- Exceptions provided under the Circular for contested issues.
- Dismissal of appeals by ITAT due to tax effect below the prescribed limit.

The judgment pertains to five appeals filed by the Revenue against the common order of CIT(A) for the Assessment Years 2009-10, 2010-11, and 2012-13 to 2014-15. The ITAT, after hearing the Departmental Representative and examining the records, noted that the tax effect involved in these appeals was below &8377; 20 lakhs, a fact not disputed by the Departmental Representative. The ITAT referenced Circular No.3/2018 issued by the CBDT on 11.07.2018, which revised the monetary limit for filing appeals before the Tribunal to &8377; 20 lakhs. The Circular applied retrospectively to all pending appeals and provided exceptions under para 10, including cases challenging the constitutional validity of provisions, illegal Board orders, undisclosed foreign assets, among others.

The ITAT determined that the present appeals did not fall within the exceptions clause of the Circular and the tax demand was below the prescribed limit. Consequently, the ITAT ruled that the appeals were not maintainable as per the recent Circular and dismissed all five appeals by the Revenue. However, the ITAT clarified that the Revenue could approach the Tribunal to recall the order if the tax effect exceeded the monetary limit or if the case fell within the exceptions outlined in the Circular. The order was pronounced on 6th September 2018 in the open court.