2019 (9) TMI 1479 - AT - Income Tax

Maintainability of appeal - low tax effect - HELD THAT - Appeals of the Revenue are dismissed as non-maintainable as the tax effect involved in the appeals is below 50 lakhs. However it is made clear that the Department is at liberty to file Miscellaneous Application for recalling of the order if the tax effect is found to be more than the prescribed limit of 50, 00, 000/- or any of the conditions etc. as available in the amendment carried out in para 10 of Circular No. 3/2018 dated 20.08.2018 is made out. Appeal of Revenue is dismissed.

Summary

Issues:
- Appeal against order of Commissioner of Income Tax (Appeals)-33, New Delhi for assessment year 2012-13.
- Applicability of Circular No. 17/2019 dated 08.08.2019 issued by CBDT regarding monetary limits for filing appeals.
- Enhancement of monetary limit for filing appeals by the Department before the Income Tax Appellate Tribunal.
- Clarification on the applicability of the circular to pending appeals.
- Dismissal of Revenue's appeal due to tax effect being below ?50 lakhs.

Analysis:

1. The appeal before the ITAT DELHI was against an order passed by the Commissioner of Income Tax (Appeals)-33, New Delhi for the assessment year 2012-13. The Revenue appealed the decision, seeking a review by the Tribunal.

2. The main issue highlighted was the applicability of Circular No. 17/2019 dated 08.08.2019 issued by the CBDT. This circular enhanced the monetary limit for filing appeals by the Department before the Income Tax Appellate Tribunal from ?20 lakhs to ?50 lakhs. The circular emphasized the management of litigation and specified the revised monetary limits for different levels of appeals.

3. The Circular No. 17/2019 amended the earlier Circular No. 3 of 2018 and clarified certain aspects regarding the filing of appeals in income tax matters. The circular stated that the enhanced monetary limits would apply to all pending appeals, providing a clear directive for cases falling within the specified tax effect range.

4. The Tribunal noted that the CBDT's circular dated 20th August, 2019 clarified that the enhanced monetary limits would apply to all pending appeals. Consequently, the appeals by the Revenue were dismissed as non-maintainable due to the tax effect being below ?50 lakhs. However, the Department was given the option to file a Miscellaneous Application if the tax effect exceeded the prescribed limit or met the conditions specified in the circular.

5. Ultimately, the Tribunal dismissed the appeal of the Revenue based on the monetary threshold set by the CBDT's circular. The decision was pronounced in an open court on 18th September, 2019, adhering to the directives provided in the circular regarding the filing of appeals based on tax effect thresholds.

This detailed analysis of the judgment showcases the application of the CBDT's circular in determining the maintainability of appeals based on monetary limits, ensuring clarity and adherence to the specified guidelines for filing appeals before the ITAT DELHI.