2019 (8) TMI 1590 - AT - Income Tax

Maintainability of appeal - low tax effect - monetary limits for filing of appeals by the Department before the Tribunal - HELD THAT - The tax effect in dispute in the captioned appeals is stated to be below the enhanced monetary limit of ₹ 50 lakhs specified in the CBDT Circular dated 08.08.2019 Read with circular dated 11.07.2018. In conclusion, by applying the circular dated 08.08.2019 (supra) read with circulars dated 11.07.2018 (supra) and 20.08.2019 (supra), the captioned appeals of the Revenue are dismissed as withdrawn/ not pressed.

Summary

Issues:
Appeal listed before ITAT Delhi due to CBDT Circular No.17/2019 - Tax effect below the enhanced monetary limit specified in CBDT Circular dated 08.08.2019 - Position of Revenue not protected by exceptions in CBDT circular dated 11.07.2018 - Appeals deemed withdrawn/not pressed - Reference to Supreme Court judgment regarding enhanced limit - Revenue's liberty to approach Tribunal for recall of order if tax effect exceeds limit or protected by exceptions.

Analysis:
The appeal in ITA No. 330/Del/2017 and 99 other appeals were listed before the ITAT Delhi as they were deemed not surviving for consideration in light of the CBDT Circular No.17/2019 dated 8th August, 2019. The CBDT, through the Circular, had modified the monetary limits for filing appeals by the Department before the Tribunal, with the tax effect in dispute in the appeals stated to be below the enhanced monetary limit of ?50 lakhs specified in the Circular. The Revenue, represented by the learned D.R., failed to show that the appeals were protected by any exceptions provided in the CBDT circular dated 11.07.2018 and its subsequent amendment dated 20th August, 2018.

Without delving into the merits of the issues raised in the appeals, the ITAT deemed them to be withdrawn/not pressed as their filing did not align with the CBDT circulars dated 08.08.2019 and 11.07.2018. Notably, the Hon'ble Supreme Court had acknowledged the enhanced limit in a specific case while dismissing the Special Leave Petition arising from a judgment of the Hon'ble Bombay High Court. The ITAT clarified that if the Revenue later discovers that the tax effect in any of the appeals exceeds the prescribed limit or is protected by exceptions in the CBDT circular dated 11.07.2018, they can approach the Tribunal for the recall of the order and reinstitution of the appeal for adjudication on merits, to be considered in accordance with the prevailing law.

In conclusion, applying the relevant circulars, the ITAT Delhi dismissed the Revenue's appeals as withdrawn/not pressed. The decision was pronounced in the open court on 23rd August, 2019, with the order officially declared on 28th August, 2019.